Summary
A 55-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to multiple unresolved overdue debts exceeding $40,000. The Statement of Reasons detailed six specific overdue debts, including charged-off accounts of $3,752, $2,471, and $18,532, as well as collection accounts for $11,241 and $4,654, and a medical collection for $206.
The judge identified disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c). While mitigating conditions under Paragraphs 20(b), 20(c), and 20(d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to resolve the significant overdue debts and a lack of evidence demonstrating responsible financial management or good-faith efforts to repay creditors. The applicant did not show that these financial difficulties were due to circumstances beyond his control.
Why the Applicant Was Denied
- The applicant failed to resolve significant overdue debts totaling over $40,000.
- The applicant did not provide evidence of responsible financial management or efforts to repay creditors.
- The applicant's financial difficulties were not mitigated by circumstances beyond his control, as he did not demonstrate good-faith efforts to address his 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 demonstrate responsible actions to resolve debts despite claiming financial difficulties due to unemployment and divorce.
- AG ¶ 20(c)rejectedFinancial CounselingThe applicant did not provide evidence of taking financial counseling.
- AG ¶ 20(d)rejectedGood-faith Efforts to Repay CreditorsThe applicant did not initiate any good-faith 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 issuedNov 25, 2013
- Answer filedJan 6, 2014Requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateMay 1, 2014
Cite For
- Failure to Resolve Significant Financial Obligations Under Guideline F
- Lack of Evidence for Responsible Financial Management
- Impact of Financial Difficulties on Security Clearance Eligibility Under the Whole-person Concept.