Summary
The applicant, a 35-year-old material specialist for a defense contractor, faced security clearance denial under Guideline F due to significant unresolved financial delinquencies totaling approximately $41,461. Despite a stable job since 2008, the applicant failed to demonstrate sufficient efforts to address his debts or seek effective financial counseling, leading to concerns about his judgment and reliability.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: There are three medical accounts with past-due balances in the amounts of $422, $432, and $1,987, which were placed for collection in 2011 (1.a). There is a bank credit card account with a high credit and unpaid balance of $17,350 and a past-due balance of $2,918 that was closed by the creditor, placed for collection, and charged off in 2009 (1.b). There is an internet and cable account with a high credit and past-due balance of $214 that was placed for collection in 2010, with the unpaid balance increased to $364 (1.c). There is a bank credit card account with a high credit of $4,158 and a past due balance of $4,765 that was placed for collection and sold in 2011 (1.d). There is a credit card account with a high credit and remaining unpaid balance of $2,274, as well as a past due balance of $1,501, that was placed for collection and charged off in 2010 (1.e). There is a charge account with a large consumer electronics company with a high credit of $1,522 and an unpaid balance of $1,064 that was past due and sold to a debt purchaser in 2009 (1.f).
The judge denied the clearance. The government raised disqualifying conditions F.3, F.2. The decision turned on the following: The applicant accumulated approximately $41,461 in unresolved debts, including multiple accounts in collection status; He failed to establish repayment plans or make payments on his delinquent accounts, demonstrating a lack of financial responsibility; The applicant's efforts to seek financial counseling were insufficient and did not result in actionable steps to resolve his debts.
Why the Applicant Was Denied
- The applicant accumulated approximately $41,461 in unresolved debts, including multiple accounts in collection status.
- He failed to establish repayment plans or make payments on his delinquent accounts, demonstrating a lack of financial responsibility.
- The applicant's efforts to seek financial counseling were insufficient and did not result in actionable steps to resolve his debts.
Conditions Referenced
- F.3raisedInability to Satisfy Debts
- F.2raisedDelinquent Debts
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability and trustworthiness.”
Procedural Posture
- SOR issuedFeb 13, 2014
- Answer filedApr 10, 2014Applicant requested a hearing.
- Hearing heldMay 28, 2014
- Decision dateJun 10, 2014
Cite For
- Denial Based on Unresolved Financial Delinquencies Under Guideline F
- Insufficient Efforts to Mitigate Financial Concerns
- Impact of Financial Irresponsibility on Security Clearance Eligibility