Summary
A 37-year-old married government contractor with two children was denied a security clearance under Guideline F (Financial Considerations) due to significant financial delinquencies totaling approximately $108,634. The Statement of Reasons (SOR) detailed several specific debts, including a $29,284 charged-off bank card account and another $6,086 owed to the same bank, both unpaid as of November 19, 2013. The applicant also admitted to a $19,101 charged-off debt, a $4,800 charged-off debt, and a $1,286 partially-secured charged-off loan.
Despite admitting to many of these debts and asserting that some were unenforceable under state law, the applicant failed to provide sufficient evidence of resolution or mitigation. He also stated that he had not contacted several identified creditors after receiving the SOR.
The denial was based on the applicant's failure to provide documentation corroborating claims of debt resolution, the ongoing nature of his financial delinquencies despite a stable income, and the unpersuasive nature of his reliance on the statute of limitations as a defense. Disqualifying conditions under Guideline F were raised, while several mitigating conditions were considered but ultimately deemed insufficient.
Why the Applicant Was Denied
- The applicant failed to provide documentation to corroborate claims of debt resolution.
- The applicant's financial delinquencies were ongoing and not adequately addressed despite a stable income.
- The applicant's reliance on the statute of limitations as a defense was not persuasive.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Financial Problems Occurred so Long Ago or Were InfrequentThe applicant's financial issues were ongoing and not resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile marital issues were beyond his control, the applicant did not act responsibly to resolve debts.
- AG ¶ 20(c)rejectedEvidence of Financial CounselingThe applicant did not provide evidence of effective financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a good-faith effort to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant's claims regarding the statute of limitations were not substantiated.
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, trustworthiness and ability to protect classified information."”
Procedural Posture
- SOR issuedNov 19, 2013
- Answer filedDec 4, 2013
- Hearing heldJan 29, 2014
- Decision dateFeb 28, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Impact of Marital Issues on Financial Responsibility
- Insufficient Evidence of Debt Resolution or Mitigation