Summary
A 30-year-old single male employed by a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved debts totaling approximately $16,082. The Statement of Reasons detailed eight specific debts. These included a $331 small claims judgment from 2009, which the applicant denied, and seven admitted past-due debts to various creditors. These admitted debts ranged from $295 for a medical bill to $7,369, with most originating around 2011 or 2012.
The judge found that the applicant's financial difficulties were ongoing and not mitigated by any evidence of responsible action or repayment efforts. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised. While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant having over $16,000 in past-due debts, all outstanding for several years, and the absence of any evidence of financial counseling or repayment efforts. The applicant's financial difficulties remained unresolved, and he failed to demonstrate responsible action even after obtaining employment, leading to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has over $16,000 in past-due debts, all of which have been due and owing for several years.
- The applicant submitted no evidence of financial counseling or repayment efforts for his debts.
- The applicant's financial difficulties were not resolved, and he did not demonstrate responsible action after obtaining employment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial difficulties have been ongoing for several years.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of responsible action after obtaining employment.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not show any evidence of making payments or arrangements with creditors.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedThe applicant did not demonstrate any plan to resolve his debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant did not contest the legitimacy of the debts listed in the SOR.
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 issuedMar 18, 2014
- Answer filedApr 14, 2014
- Hearing held—Applicant requested a decision without a hearing.
- Decision dateDec 5, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Considerations on Security Clearance Eligibility
- Lack of Evidence for Mitigating Financial Conditions