Summary
A 49-year-old customer service representative was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts and a history of foreclosure. The applicant admitted to incurring and owing 13 delinquent debts totaling $34,486. These included a state tax debt for which a repayment plan was negotiated but never formalized or paid, and an unresolved $39 medical collection account.
Disqualifying conditions under Guideline F were raised, specifically concerning a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While several mitigating conditions were considered, they were ultimately not sufficient to overcome the security concerns.
The denial was based on the applicant's failure to make any effort to repay over $34,000 in delinquent debts, despite having stable employment for over five years. The applicant also did not provide evidence of debt resolution or character references, leading to concerns about reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has over $34,000 in delinquent debts without any effort to repay them.
- The applicant's financial irresponsibility continues despite stable employment for over five years.
- The applicant failed to provide evidence of debt resolution or character references.
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 Unlikely to RecurThe applicant's financial issues are ongoing and significant.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some debts were due to family circumstances, the applicant did not demonstrate responsible actions.
- AG ¶ 20(c)rejectedReceived Counseling or Evidence of Problem ResolutionThe applicant took a financial management class but showed no substantial progress.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant made no efforts to resolve any of the debts.
- AG ¶ 20(e)notedReasonable Basis to Dispute Legitimacy of Debt
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 issuedJun 27, 2015
- Answer filedAug 1, 2015
- Hearing heldDec 8, 2015Applicant was pro se.
- Decision dateJun 7, 2016
Cite For
- Denial of Security Clearance Due to Significant Financial Irresponsibility
- Impact of Ongoing Delinquent Debts on Security Clearance Eligibility
- Insufficient Evidence of Debt Resolution as a Basis for Clearance Denial