Summary
A 57-year-old retired U.S. Army E-8 with a bachelor's degree was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons alleged five delinquent debts totaling $71,223. Specifically, the applicant owed a mortgage lender $22,466 in past-due payments on a $151,188 loan for one property, and a lending company $15,764. These issues raised Disqualifying Conditions F.1.a and F.1.c.
While the applicant resolved four of the five debts, a remaining debt of $15,764 to a lending company was unresolved. The decision noted that the applicant did not provide evidence of credit counseling or demonstrate good judgment regarding her financial situation.
Despite the application of Mitigating Conditions F.2.c and F.2.d, the security concerns were not mitigated. The applicant's financial issues raised substantial doubts about her reliability and trustworthiness, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant had unresolved debts totaling $15,764, indicating a lack of financial responsibility.
- The applicant did not provide evidence of credit counseling or good judgment regarding her financial situation.
- The applicant's financial issues raised substantial doubts about her reliability and trustworthiness.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not provide evidence of credit counseling.
- F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant resolved four of the five 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 21, 2015
- Answer filedJun 23, 2015
- Hearing held—Applicant requested decision based on written record.
- Decision dateJan 28, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
- Lack of Evidence for Mitigating Financial Concerns in Security Clearance Cases