Summary
A 49-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to unresolved debts totaling approximately $36,868. The Statement of Reasons detailed nine delinquent accounts, including a $10,373 credit card judgment, multiple other credit card debts ranging from $1,963 to $7,502, a $663 medical collection, and a $1,251 consumer charge account. One collection account for $1,610 was identified as a duplicate of another listed debt.
The applicant acknowledged these financial obligations and cited personal circumstances, such as his wife's job loss and his own medical issues, as contributing factors. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised.
While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, the clearance was ultimately denied. The denial was based on the applicant's failure to provide sufficient evidence of responsible behavior regarding his debts and his inability to demonstrate a good-faith effort to repay his overdue creditors.
Why the Applicant Was Denied
- Applicant has unresolved debts totaling approximately $36,868.
- Applicant did not provide sufficient evidence of responsible behavior regarding his debts.
- Applicant failed to demonstrate a good-faith effort to repay overdue creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's wife's job loss and his reduced income contributed to his financial problems.
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurApplicant did not demonstrate that the debts are unlikely to recur.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem or Indications That the Problem Is Being ResolvedApplicant failed to present evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsNo evidence of a good-faith effort to resolve debts was provided.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedNov 16, 2012
- Answer filedDec 3, 2012Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on the written record.
- Decision dateApr 16, 2013
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Responsible Financial Behavior in Security Clearance Cases.