Summary
A 31-year-old former Army service member was denied a security clearance under Guideline F (Financial Considerations) due to over $13,000 in overdue debts. The Statement of Reasons (SOR) detailed multiple outstanding financial obligations, including charged-off accounts of $7,035, $3,762, $580, $436, and $169. Additionally, the SOR cited collection accounts totaling $1,047, $813, $554, $202, and $101, along with a judgment entered against the applicant for $630.
The denial was based on the applicant's significant unresolved debts, which raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c). While the applicant's financial difficulties were acknowledged as being exacerbated by challenges in finding suitable employment after a medical discharge from the Army, these circumstances did not fully mitigate the concerns.
Despite some efforts to resolve smaller debts, the applicant failed to significantly reduce her largest outstanding obligations. The adjudicator applied mitigating conditions AG ¶ 20(b) and AG ¶ 20(d), but ultimately found the applicant's actions insufficient to address the financial concerns, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has significant overdue debts totaling over $13,000 that have not been resolved or reduced.
- The applicant's financial difficulties were exacerbated by her inability to find suitable employment after being medically discharged from the Army, but she did not demonstrate responsible action in addressing her largest debts.
- The applicant's efforts to settle debts were insufficient to mitigate the financial concerns raised under Guideline F.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant's financial difficulties were due to circumstances beyond her control, she did not act responsibly in addressing her debts.
- AG ¶ 20(d)rejectedDebt Has Been Reduced or ResolvedThe majority of the applicant's debts remain unresolved.
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 issuedOct 15, 2014
- Answer filedNov 4, 2014Applicant requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateApr 23, 2015
Cite For
- Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Whole-person Concept in Security Clearance Determinations