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Summary

The applicant, a 43-year-old technical support provider for a defense contractor, faced security concerns under Guideline F due to approximately $7,235 in delinquent debts, primarily medical and credit card debts. Despite having the financial resources to address these debts, the applicant failed to take adequate action to resolve them, leading to the denial of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Medical – $94 - Delinquent since 2008. Applicant disputed this debt with the provider by telephone in 2008 or 2009. No further action was attempted by Applicant. It remains unresolved (1.a). Medical - $78 - Delinquent since 2012. Applicant generally disputes this orthopedist’s bill balance, but has not done so in writing. He disputed it with the provider by phone in 2011 because he believed the amount should have been covered by his health insurer. No further action has been taken. It remains unaddressed (1.b). Credit Card - $1,184 – Delinquent since 2008. This unpaid debt is related to a furniture purchase. It arose after he broke up with a female companion after a number of years and had to start over in his own dwelling. The delinquent debt was eventually referred for collection (1.c). Credit Card - $4,229 – Delinquent since 2012. Applicant had been making payments on this credit card. Then he had some financial difficulty in 2012 that coincided with a wave of layoffs at his workplace. This followed a period of time in a detoxification facility to address alcohol abuse, which had been an issue for a couple of years (1.d). Telecommunications Provider - $178 – Delinquent since 2010. Applicant cannot show that these two accounts are duplicative. He does not recall having two accounts with this provider simultaneously. Applicant has not been in contact with this creditor (1.e). Telecommunications Provider - $330 – Delinquent since 2010. Applicant cannot show that these two accounts are duplicative. He does not recall having two accounts with this provider simultaneously. Applicant has not been in contact with this creditor (1.f). Medical - $1,072 – Delinquent since 2011. This debt is related to Applicant’s detoxification program. It represents his balance owed for the process. He has not made any payments toward his treatment since 2011, nor has he been in contact with this creditor (1.g). Telecommunications Provider - $70 – Delinquent since 2011. Applicant switched providers. When he left one provider for the other, he had a zero balance on the former provider’s account. This charge appeared soon thereafter, which Applicant disputes (1.h).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: Applicant failed to demonstrate a good-faith effort to repay overdue creditors or resolve debts; Applicant has not received financial counseling and has neglected to address his debts despite having the financial means to do so; The applicant's passive approach to debt resolution and lack of initiative raised concerns about his reliability and judgment.

Why the Applicant Was Denied

• Applicant failed to demonstrate a good-faith effort to repay overdue creditors or resolve debts.
• Applicant has not received financial counseling and has neglected to address his debts despite having the financial means to do so.
• The applicant's passive approach to debt resolution and lack of initiative raised concerns about his reliability and judgment.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedMar 7, 2014
• Answer filedMay 3, 2014Applicant admitted six of eight allegations.
• Hearing heldSep 11, 2014
• Decision dateOct 15, 2014

Cite For

• Failure to Mitigate Financial Considerations Under Guideline F
• Passive Approach to Debt Resolution as a Disqualifying Factor
• Lack of Financial Counseling as a Concern in Security Clearance Evaluations