Summary
A 44-year-old engineer's security clearance application was denied due to unresolved financial concerns under Guideline F. The applicant had accumulated over $25,000 in delinquent debts over the past five years. Specific allegations included an unresolved $13,646 judgment debt to one bank and two unresolved charged-off credit card debts totaling $11,555. Additionally, the applicant had two unpaid medical debts totaling $75.
While one $1,357 judgment debt to another bank was resolved, the applicant failed to provide sufficient evidence of financial responsibility or mitigation for the majority of his outstanding obligations. Disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c) were raised.
Despite consideration of mitigating conditions under Adjudicative Guidelines Paragraphs 20(a), 20(b), 20(c), 20(d), and 20(e), the denial was upheld. The decision cited the substantial amount of unresolved debt, the lack of evidence demonstrating responsible action, and the absence of a workable budget or financial counseling.
Why the Applicant Was Denied
- Applicant incurred over $25,000 in unresolved delinquent debts over the past five years.
- Insufficient evidence was provided to demonstrate responsible action or mitigation regarding the majority of debts.
- No evidence of financial counseling or a workable budget was presented.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe debt alleged in SOR ¶ 1.b was resolved.
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurApplicant did not demonstrate that the financial issues were infrequent or unlikely to recur.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlApplicant failed to show that circumstances beyond his control contributed to his financial problems.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(e)rejectedDispute Legitimacy of Past-due DebtApplicant did not provide documented proof to dispute the legitimacy of the debts.
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 issuedApr 25, 2014
- Answer filedMay 9, 2014
- Hearing held—Decided on the written record without a hearing.
- Decision dateDec 31, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Financial Issues on Reliability and Trustworthiness Assessments