Summary
A 46-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to substantial delinquent debts totaling over $97,800. The Statement of Reasons detailed several specific financial obligations. These included two charged-off home equity loans, one for $60,335 and another for $24,741, both placed with collection agencies in mid-2010.
Additional debts included a charged-off credit card account for $4,354, a $1,074 medical debt from a sports injury not fully covered by insurance, and another charged-off credit card account for $6,768. One $161 medical debt, which had been placed for collection, was repaid.
Despite regular full-time employment and a high income, the applicant demonstrated insufficient efforts to resolve the majority of his debts. The decision cited the applicant's substantial delinquent indebtedness and his lack of means or efforts to resolve these obligations, leading to ongoing security concerns and the denial of his security clearance.
Why the Applicant Was Denied
- The applicant incurred substantial delinquent indebtedness exceeding $97,800.
- He demonstrated neither means nor efforts to resolve the majority of his debts despite regular full-time employment.
- The applicant's financial irresponsibility raised ongoing security concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant provided evidence of recent bankruptcy credit counseling but did not demonstrate substantial progress toward debt resolution.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts to resolve debts were insufficient and did not demonstrate responsible action.
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 issuedNov 3, 2014
- Answer filedDec 6, 2014
- Hearing heldMar 17, 2015
- Decision dateJun 17, 2015
Cite For
- Insufficient Efforts to Resolve Financial Obligations Under Guideline F
- Ongoing Financial Irresponsibility as a Security Concern
- Impact of Financial Issues on Security Clearance Eligibility