Summary
A 31-year-old government contractor was denied a security clearance under Guideline F, Financial Considerations, due to substantial delinquent debts. The Statement of Reasons alleged 14 delinquent debts totaling $29,074, primarily comprising $27,253 in student loans and $1,821 in unpaid medical bills. This raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and ¶ 19(c).
While the applicant resolved two small medical debts, mitigating conditions AG ¶ 20(c), ¶ 20(d), and ¶ 20(e) were applied. However, the denial was based on the applicant incurring approximately $28,774 in substantial delinquent indebtedness and failing to resolve the majority of these accounts, remaining indebted to 12 creditors.
Crucially, the applicant did not provide evidence of financial counseling or a solid plan to address his outstanding financial obligations, leading to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant incurred substantial delinquent indebtedness totaling approximately $28,774.
- He failed to resolve the majority of his delinquent accounts, remaining indebted to 12 creditors.
- The applicant did not provide evidence of financial counseling or a solid plan to address his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant did not provide any evidence of financial or credit counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not document any effort to repay or resolve the remaining delinquent debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not assert a legitimate basis to dispute the validity of the 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 issuedMay 29, 2014
- Answer filedAug 2, 2014
- Hearing heldJun 23, 2015
- Decision dateAug 18, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence of Debt Resolution Efforts Under Guideline F