Summary
A 39-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved debts. The applicant had approximately $26,580 in delinquent debt, comprising 35 medical accounts, two non-medical collection accounts, and one charged-off account. Many of these debts had been delinquent for two to seven years.
Disqualifying conditions included the accumulation of significant delinquent debt and a history of not meeting financial obligations. While mitigating conditions such as the debt being largely due to circumstances beyond the applicant's control, the applicant demonstrating a good-faith effort to resolve the debt, and the debt being resolved or in the process of resolution were considered, they were ultimately not sufficient.
The denial was based on the applicant's failure to provide evidence of any attempts to resolve the debts or seek credit counseling. The applicant's claims of financial hardship were not substantiated by actions taken to mitigate the outstanding financial obligations.
Why the Applicant Was Denied
- The applicant has significant overdue debts totaling approximately $26,580, including 35 medical accounts and unresolved judgments.
- The applicant did not provide evidence of any attempts to resolve his debts or seek credit counseling.
- The applicant's claims of financial hardship were not substantiated by actions taken to mitigate the debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not act responsibly to resolve his debts despite personal hardships.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not seek any credit counseling or debt consolidation services.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not initiate any efforts to repay overdue creditors.
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 5, 2013
- Answer filedJul 1, 2013Applicant requested decision on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateOct 25, 2013
Cite For
- Financial Irresponsibility Under Guideline F
- Lack of Evidence for Debt Resolution Efforts
- Impact of Personal Hardships on Financial Obligations