Summary
A 38-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to approximately $15,000 in delinquent debts. The Statement of Reasons detailed numerous outstanding obligations, including thirteen delinquent medical bills, one for $625 and two for $302 each. Other significant debts included a $6,976 deficiency from an automobile repossession, a $1,601 judgment from a furniture store, a $622 cell phone bill, a $92 car insurance bill, a $114 delinquent line of credit, and two personal loans for $576 and $660 respectively.
Disqualifying conditions related to an inability to satisfy financial obligations and a history of not meeting financial responsibilities were raised. While mitigating conditions such as the debts being caused by circumstances beyond the applicant's control (her husband's disability), good-faith efforts to resolve the issues, and the debts not being recent were considered, they were ultimately insufficient.
The denial was based on the applicant's failure to take meaningful steps to resolve her debts, despite a net monthly remainder of about $580. Furthermore, she lacked a formal household budget and had not sought financial counseling, indicating a limited understanding of financial management.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling approximately $15,000, indicating an inability to satisfy financial obligations.
- The applicant has not taken meaningful steps to resolve her debts despite having a net monthly remainder of about $580.
- The applicant lacks a formal household budget and has not sought financial counseling, demonstrating limited understanding of financial matters.
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 so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's delinquent debts are numerous and recent.
- AG ¶ 20(b)notedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant has not sought or received financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not taken meaningful steps to systematically resolve her debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant has not disputed any of the debts in the SOR.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJul 11, 2014
- Answer filedJul 29, 2014
- Hearing heldNov 18, 2014
- Decision dateDec 18, 2014
Cite For
- Financial Irresponsibility Under Guideline F
- Failure to Demonstrate a Realistic Plan to Resolve Debts
- Lack of Financial Counseling as a Mitigating Factor