Summary
The applicant, a 28-year-old manufacturing coordinator, sought a security clearance but was denied due to unresolved financial issues totaling over $20,000. Despite being current on some obligations, the applicant's failure to address multiple debts and lack of financial counseling raised significant concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $1,000 on a credit card account (1.a). $12,127 on an auto loan account (1.b). $1,179 on a cell phone collection account (1.c). $500 on a different cell phone account (1.d). $341 insurance debt (1.e). $1,800 on a signature loan (1.f). $1,585 collection account for a lawn mower (1.g). $1,000 medical debt (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has nine charged-off or collection accounts totaling over $20,000 that remain unresolved; The applicant admitted to financial difficulties and did not demonstrate a good-faith effort to repay his debts, having only made minimal payments on one account; The applicant has not received any financial counseling and has not shown that his financial problems are under control.
Why the Applicant Was Denied
- The applicant has nine charged-off or collection accounts totaling over $20,000 that remain unresolved.
- The applicant admitted to financial difficulties and did not demonstrate a good-faith effort to repay his debts, having only made minimal payments on one account.
- The applicant has not received any financial counseling and has not shown that his financial problems are under control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant has not received any financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has only made minimal payments on one account and has not acted responsibly in addressing his debts.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances to meet his financial obligations.”
Procedural Posture
- SOR issuedNov 30, 2012
- Answer filedDec 20, 2012
- Hearing heldFeb 26, 2013
- Decision dateMar 7, 2013
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Lack of Good-faith Effort to Resolve Debts as a Basis for Denial
- The Importance of Financial Counseling in Mitigating Security Concerns