Summary
A 44-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to over $25,000 in delinquent debts accumulated between 2007 and 2012. Disqualifying conditions were raised under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
The applicant provided proof of resolving two specific debts: a $4,797 debt owed to a previous landlord and a $130 debt owed to a medical provider. However, he failed to provide evidence of addressing the majority of his remaining delinquent debts.
Despite the application of mitigating conditions under AG ¶ 20(a), (b), (c), (d), and (e), the clearance was denied. The denial was based on the applicant's failure to demonstrate a plan or effort to manage his financial issues effectively, and his lack of participation in credit counseling or other clear indications of financial control.
Why the Applicant Was Denied
- The applicant failed to provide evidence of resolving the majority of his delinquent debts.
- He did not demonstrate a plan or effort to manage his financial issues effectively.
- The applicant did not obtain credit counseling or show clear indications of financial control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant provided documentation showing he resolved two debts.
- AG ¶ 20(a)rejectedBehavior Occurred Long Ago or InfrequentlyThe applicant's financial issues remain unresolved.
- AG ¶ 20(b)rejectedConditions Beyond ControlThe applicant did not specify circumstances or responsible actions.
- AG ¶ 20(c)rejectedReceived Counseling or Evidence of ControlThe applicant did not participate in credit counseling.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtThe applicant did not provide evidence to dispute any 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 16, 2015
- Answer filedJun 11, 2015Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateJan 12, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Financial Responsibility
- Lack of Evidence for Mitigating Financial Concerns Under Guideline F