Summary
A 33-year-old defense industry employee and part-time reservist was denied a security clearance under Guideline F, Financial Considerations, due to significant and recurrent financial issues. The Statement of Reasons detailed several allegations, including $33,550 in charged-off consumer credit debt, a $2,629 collection balance, a $205 cable provider collection, and a mortgage that was 90 days past due by $1,563 on a $55,356 balance.
The applicant's delinquent debts totaled over $36,000, prominently featuring a charged-off line of credit amounting to $24,337. While the applicant had enrolled in a debt resolution program, the judge determined that insufficient progress had been made in addressing these substantial financial obligations.
Ultimately, the clearance was denied because the applicant's financial issues were recent and recurrent, demonstrating a lack of financial responsibility. Furthermore, the applicant failed to provide adequate evidence of a concrete plan to resolve his significant debts, leading to the conclusion that his financial situation posed an unacceptable risk.
Why the Applicant Was Denied
- The applicant had over $36,000 in delinquent debts, including a charged-off line of credit of $24,337.
- The applicant's financial issues were recurrent and recent, indicating a lack of financial responsibility.
- The applicant did not provide sufficient evidence of a plan to resolve his significant debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial problems were partially attributed to reduced work hours and caregiving responsibilities, he did not act responsibly toward his debts after obtaining stable employment.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant's debt resolution program was too new to demonstrate effective resolution of financial issues.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsAlthough the applicant made some payments into the debt resolution program, it was too soon to conclude that his financial problems were under control.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 13, 2013
- Answer filedJan 14, 2014Requested decision without a hearing.
- Hearing held—Decision made based on written submissions.
- Decision dateApr 3, 2014
Cite For
- Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Mitigating Conditions in Financial Cases