Summary
A 66-year-old government contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial delinquencies totaling $49,041. The Statement of Reasons detailed three specific debts. One debt, initially $21,938 and delinquent since at least August 2008, was partially discharged by a creditor for $20,452.62 in December 2014, though the applicant was unsure if it resulted from a hacking incident. A second debt, for $10,211, was successfully resolved through settlement.
However, a significant remaining debt of $16,892 to a collection agent for a credit union, delinquent since at least October 2011, remained unresolved. This debt was reflected as "Collection/Charged-off" on an April 2015 credit report. The applicant believed this account was also hacked, but his explanation was unclear.
Despite resolving one debt and having another partially discharged, the applicant failed to demonstrate efforts to resolve the $16,892 collection account. This lack of action regarding a substantial outstanding obligation led to concerns about his reliability and trustworthiness, resulting in the denial of his security clearance.
Why the Applicant Was Denied
- The applicant was delinquent on three debts totaling $49,041, demonstrating a history of not addressing financial obligations.
- He failed to document any efforts to resolve the remaining $16,892 collection account, which raised concerns about his reliability and trustworthiness.
- The applicant's explanation regarding the hacking of his credit union account was unclear and did not mitigate the financial concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's debts are recent and unresolved.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant failed to demonstrate how the hacking directly affected his debts.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant did not undergo financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant did not document efforts to resolve the remaining debt.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant failed to provide documented proof to substantiate his disputes.
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 issuedDec 5, 2014
- Answer filedDec 15, 2014
- Hearing heldApr 20, 2015
- Decision dateMay 22, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Financial Responsibility and Mitigation
- Impact of Financial Delinquencies on Reliability and Trustworthiness Assessments