Summary
A 58-year-old applicant with a bachelor's degree in business was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues totaling over $100,000. The Statement of Reasons (SOR) detailed multiple credit card debts, many of which were charged off. Specific allegations included a $19,811 debt settled for $9,200 in August 2012, and a $9,434 debt settled for $2,818 in October 2011. Another debt of $12,369 was settled for approximately $6,160 in December 2011.
Other debts included a $33,009 credit card debt, used in 2010 for a car for his son and other expenses, which was charged off. Additional charged-off credit card debts totaled $6,635, $25,676, $23,987, $6,300, and $8,927. Furthermore, a $23,597 credit card debt was in collection and unpaid.
The denial was based on the applicant's over $100,000 in unresolved consumer credit card debt and an unstable financial situation, despite some debt settlements and a plan to resolve debts by 2015. The judge found insufficient evidence of a good-faith effort to repay creditors, noting minimal payments and a lack of active debt management. Disqualifying conditions F.19(a) and F.19(c) were raised, while mitigating conditions F.20(b), F.20(c), and F.20(d) were applied.
Why the Applicant Was Denied
- Applicant has over $100,000 in unresolved consumer credit card debt.
- Applicant's financial situation remains unstable despite some debt settlements and a plan to resolve debts by 2015.
- The judge found insufficient evidence of a good-faith effort to repay creditors, as payments were minimal and debts were not being actively managed.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's unemployment contributed to financial difficulties.
- F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant received financial counseling.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsPayments of $10 a month on significant debts were not considered a good-faith effort.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 21, 2012
- Answer filedJan 27, 2013
- Hearing heldAug 14, 2013record held open until 08/28/2013
- Decision dateSep 5, 2013
Cite For
- Evaluation of Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Good-faith Efforts in Debt Repayment