Summary
The applicant, a 49-year-old military veteran and government contractor, faced security clearance denial under Guideline F due to significant unresolved financial delinquencies totaling approximately $24,182. Despite some debts being paid shortly before the hearing, the applicant failed to demonstrate a consistent effort to manage his financial obligations, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was indebted to a creditor on a $1,659 judgment filed against him in December 2007, and, as of July 31, 2013, the judgment had not been satisfied (1.a). Applicant owed a creditor $555 on an account that had been charged off and remained unpaid as of July 31, 2013 (1.b). Applicant owes $1,261 on a separate account to the same creditor identified in SOR ¶ 1.b. The debt was unsatisfied as of July 31, 2013 (1.c). Applicant owes $3,290 to a creditor on a collection account that was not satisfied as of July 31, 2013 (1.d). Applicant denied a $1,163 credit card debt, in collection status, alleged at SOR ¶ 1.f (1.f). Applicant denied a $2,924 delinquent debt alleged at SOR ¶ 1.h (1.h). Applicant owed a $1,176 delinquent debt to a creditor, and the debt had not been satisfied as of July 31, 2013 (1.i). Applicant owes a $6,408 delinquent debt, in collection status, to a creditor, and the debt had not been satisfied as of July 31, 2013 (1.j). Applicant owes a bank creditor $1,659 on a delinquent account in collection status (1.n). Applicant owed a creditor $107 on an account placed for collection (1.o).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant had a history of financial difficulties and inattention to financial responsibilities; Many debts were ongoing and occurred under circumstances likely to recur; The applicant did not establish a track record of consistent debt repayment.
Why the Applicant Was Denied
- The applicant had a history of financial difficulties and inattention to financial responsibilities.
- Many debts were ongoing and occurred under circumstances likely to recur.
- The applicant did not establish a track record of consistent debt repayment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedUnresolved Financial Delinquency Occurred Long Ago or InfrequentlyMany debts are ongoing and occurred under circumstances likely to recur.
- AG ¶ 20(b)rejectedConditions Resulting in Financial Problems Were Largely Beyond the Person's ControlThe applicant has been steadily employed since 2007 and has not experienced circumstances beyond his control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not established a consistent payment history for his debts.
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 issuedJul 31, 2013
- Answer filedSep 16, 2013
- Hearing heldNov 6, 2013
- Decision dateJan 14, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Importance of Demonstrating Consistent Financial Responsibility for Security Clearance Eligibility
- Impact of Financial Management on Trustworthiness and Reliability Assessments in Security Clearance Cases.