Summary
A 35-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to four unresolved delinquent debts totaling $18,396. The Statement of Reasons detailed these debts, including $15,059 on a medical credit card since October 2010, a $601 medical debt from November 2008, $189 on another medical account since 2012, and a $2,547 judgment from 2006.
The applicant admitted to all allegations but provided no evidence of good faith efforts to resolve the debts. While the applicant claimed attempts to negotiate payments and sought credit counseling, the judge found insufficient evidence of responsible financial behavior or resolution efforts.
The denial was based on the applicant's consistent pattern of non-payment and poor financial management, which raised doubts about their reliability and judgment. Disqualifying conditions F.1.a and F.1.c were raised, and mitigating conditions F.2.a through F.2.f were considered but ultimately did not overcome the concerns.
Why the Applicant Was Denied
- Applicant has four unresolved delinquent debts totaling $18,396.
- Applicant admitted to all allegations in the SOR and provided no evidence of good faith efforts to resolve debts.
- The judge found a consistent pattern of lack of payment and poor financial management.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.cappliedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant received financial counseling, but there is no evidence his delinquent debt problem is under control.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- F.2.fnotedThe Affluence Resulted From a Legal Source of Income
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 26, 2014
- Answer filedApr 6, 2014
- Hearing heldN/AApplicant requested decision on the written record.
- Decision dateNov 26, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence of Mitigating Circumstances in Financial Cases