Summary
A 51-year-old defense contractor and Navy veteran was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed primarily from significant, long-standing delinquent credit card debt totaling $48,961, on which only nominal recent payments had been made.
Specific allegations included failure to disclose all delinquent debts on his May 2010 security clearance application, and four charged-off or collected credit card accounts totaling $29,686. While the applicant claimed one debt was satisfied and provided proof of recent payments of $125, $150, and $150 on other specific debts, these efforts were deemed insufficient.
The judge found that the applicant's financial problems predated his stated causes of a spouse's job loss and tax miscalculation. Despite character references attesting to his reliability, the evidence did not sufficiently mitigate the financial concerns, leading to the conclusion that the applicant's efforts were not indicative of future compliance. The security clearance was therefore denied.
Why the Applicant Was Denied
- Applicant has delinquent credit card debt totaling $48,961, with only nominal recent payments made.
- The applicant's financial problems began before the claimed causes (wife's job loss and tax miscalculation) occurred.
- The applicant's efforts to resolve debts were deemed insufficient and not indicative of future compliance.
Conditions Referenced
- DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- DC 19(c)appliedA History of Not Meeting Financial Obligations
- MC 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial problems predated the claimed causes.
- MC 20(a)rejectedBehavior Happened so Long Ago or Was InfrequentThe applicant's debts have remained delinquent for an extended period.
- MC 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsRecent payments were deemed insufficient to demonstrate a commitment to resolving debts.
- MC 20(c)rejectedReceived or Is Receiving Counseling for the ProblemInsufficient evidence to conclude that the financial problems are under control.
Key Rule Quoted
“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedAug 1, 2011
- Answer filedAug 16, 2011
- Hearing heldDec 6, 2011
- Decision dateJan 10, 2012
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Rejection of Mitigating Conditions Based on the Applicant's Financial History