Summary
The applicant, a 36-year-old manager with a history of military service, faced security clearance denial under Guideline F due to significant financial delinquencies totaling over $19,000. Despite acknowledging his debts and expressing intentions to pay them, he failed to provide evidence of payments or financial management, leading to a conclusion that he did not mitigate the financial concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a collection account totaling $260 (1.a). Applicant has a charged-off account totaling $119 (1.b). Applicant has a charged-off account totaling $143 (1.c). Applicant has two student loan collection debts totaling more than $19,000 (1.d). Applicant has three other delinquent debts totaling approximately $500 (1.e).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has three collection accounts and two charged-off accounts totaling over $19,000, with no evidence of payments made; Applicant failed to provide documentation of financial counseling or a plan to address his debts; Applicant did not demonstrate responsible behavior in managing his financial obligations.
Why the Applicant Was Denied
- Applicant has three collection accounts and two charged-off accounts totaling over $19,000, with no evidence of payments made.
- Applicant failed to provide documentation of financial counseling or a plan to address his debts.
- Applicant did not demonstrate responsible behavior in managing his financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurDelinquent debts remain unpaid and are considered recent.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlNo information provided concerning factors beyond the applicant's control.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo evidence of financial counseling provided.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsApplicant failed to document payment on any of the delinquent accounts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtNone of the delinquent obligations have been denied.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedMay 11, 2015
- Answer filedJun 12, 2015Applicant elected to proceed without a hearing.
- Hearing held—Decision made based on written record.
- Decision dateJan 12, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Failure to Provide Evidence of Financial Responsibility
- Impact of Financial Issues on Security Clearance Eligibility