Summary
A 35-year-old quality inspector was denied a security clearance under Guideline F, Financial Considerations, due to 22 delinquent debts totaling over $31,000. The Statement of Reasons detailed various outstanding obligations, including multiple credit card accounts, telephone service accounts, medical accounts, a department store account, a collection account, and a jewelry store account.
Disqualifying conditions under Guideline F were raised, specifically concerning a history of not meeting financial obligations and an unwillingness to satisfy debts. While mitigating conditions were considered, the applicant's failure to make any payments on his debts and his stated intention not to do so were central to the denial.
Despite a stable income and honorable military service, the applicant's financial irresponsibility and unwillingness to address his significant delinquent debts raised substantial concerns regarding his reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has 22 delinquent, collection, or charged-off debts totaling over $31,000.
- He has made no payments on his debts and does not intend to do so, indicating an unwillingness to satisfy financial obligations.
- The applicant's financial irresponsibility raises concerns about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's wife was unemployed for a period, but he failed to act responsibly to resolve his debts after her employment resumed.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant's financial counseling was minimal and did not lead to resolution of debts.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has made no effort to address his delinquent accounts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant does not dispute the delinquent accounts.
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 issuedSep 23, 2013
- Answer filedOct 17, 2013
- Hearing heldJan 14, 2014
- Decision dateMar 21, 2014
Cite For
- Denial of Security Clearance Due to Significant Financial Irresponsibility
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Issues on Reliability and Trustworthiness Under Guideline F