Summary
A 33-year-old defense contractor and former U.S. Navy service member was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant financial issues, specifically 17 delinquent debts totaling approximately $19,000. These debts included two judgments for unpaid rent and other obligations, five personal loans, four cell phone accounts, two self-storage bills, four medical bills, a fitness club account, a cable service bill, and an insurance bill.
The Statement of Reasons detailed these financial obligations, with the earliest judgment filed in June 2012 and the latest in January 2014. Several personal loans were charged off, and numerous other accounts were referred for collection between 2009 and 2013.
The judge determined that the applicant's financial irresponsibility raised concerns about his reliability and trustworthiness. Despite the application of several mitigating conditions, the applicant failed to demonstrate sufficient efforts to resolve his debts, including not seeking financial counseling or making payments. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant has numerous and ongoing delinquent debts totaling about $19,000.
- He failed to take significant actions to resolve his debts, including not seeking financial counseling or making payments.
- The applicant's financial irresponsibility raises questions about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Indications That the Problem Is Being Resolved
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedApr 28, 2014
- Answer filedJul 21, 2014
- Hearing heldSep 11, 2014
- Decision dateNov 13, 2014
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- The Importance of Financial Stability in Security Clearance Determinations