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Summary

The applicant, a 32-year-old military veteran, faced security clearance denial under Guideline F due to unresolved financial issues, including numerous delinquent debts totaling approximately $34,948. Despite attributing his financial difficulties to personal circumstances, the applicant failed to provide sufficient evidence of responsible financial management or debt resolution, leading to doubts about his reliability and trustworthiness.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant indicated that he had two car loans (SOR ¶¶ 1.a - $6,286 and 1.g - $5,796) and the cars were voluntarily repossessed. He indicated he had settlement agreements with both creditors. For the debt in SOR ¶ 1.a, he agreed to make payments of $250 on June 1, 2015; $250 on July 1, 2015; $3,000 on July 25, 2015; $500 on September 15, 2015; $500 on October 15, 2015; and $500 on November 15, 2015. Applicant did not provide proof that he made any of those payments (1.a). Applicant provided documentation to show the mortgage loan in SOR ¶ 1.b (total balance $124,989, past-due amount $48,540) was satisfied by a short sale of the home and the subsequent deficiency balance was written off by the creditor (1.b). Applicant indicated he had a settlement agreement to resolve the debt in SOR ¶ 1.c ($432). He was to pay $289 to settle the debt. He indicated he was waiting for the creditor to acknowledge he paid the settlement. Applicant failed to provide documentary evidence that he paid the settlement (1.c). Applicant indicated he settled the debt for a delinquent utility account alleged in SOR ¶ 1.d ($388). He provided a document showing he had a payment plan to pay $100 a month until the debt was satisfied. Applicant did not provide proof he made any payments (1.d). Applicant indicated he had a payment plan to resolve the debt in SOR ¶ 1.e ($1,122). He stated the creditor would accept monthly payments of $93 for 12 months to pay the balance in full. Applicant failed to provide documentary proof that he made any payments (1.e). Applicant indicated the debt in SOR ¶ 1.f ($4,456) was the loan for a car that was in an accident. Applicant provided documents to show his insurance company settled a claim on his behalf. The documents do not reflect the amount alleged in the SOR nor can it be verified that it is the same debt as alleged (1.f). Applicant indicated he had two car loans (SOR ¶¶ 1.a - $6,286 and 1.g - $5,796) and the cars were voluntarily repossessed. He indicated he had settlement agreements with both creditors. Regarding the debt in SOR ¶ 1.g, he indicated the creditor agreed to accept $2,632 as a settlement payment, to be paid with monthly payments of $263 beginning in July 2015. Applicant did not provide evidence to verify the terms of the settlements or proof of any payments (1.g). Applicant indicated he settled the debt in SOR ¶ 1.h ($329) for $300. At the time of his answer, he was waiting to receive a receipt to show the account was settled. He failed to provide documentary evidence of his payment or that the account is settled (1.h). Applicant indicated the creditor for the debt in SOR ¶ 1.i ($435) agreed to settle the account for the amount owed with a payment on July 1, 2015. Applicant provided a document from the creditor dated May 18, 2015. It verified that Applicant had contacted the creditor to settle the debt that had been charged off in November 2011. The creditor advised Applicant it does not accept settlement agreements. No other information was provided regarding Applicant’s actions to pay the debt (1.i). Applicant indicated the debt in SOR ¶ 1.j ($118) was fraudulently placed in his name without his knowledge. He indicated the creditor was conducting an investigation. He did not provide any documentary evidence of his actions to dispute the debt (1.j). Applicant acknowledged the delinquent student loans in SOR ¶¶ 1.k ($3,330) and 1.l ($5,576). He indicated in his answer to the SOR that he was told by his recruiter that upon 10 years of successful service or three enlistments that the military would pay off his student loans. When he reached the ten-year mark and requested the loans be paid, he was told by his commander that the program was no longer available, and he was responsible for satisfying his student loan obligation. In his answer, he stated he arranged to pay $100 a month on the aggregate amount owed. When he became unemployed, he received a deferment until July 2015. He did not provide documentary proof that he resumed payments in July 2015 (1.k). Applicant acknowledged the delinquent student loans in SOR ¶¶ 1.k ($3,330) and 1.l ($5,576). He indicated in his answer to the SOR that he was told by his recruiter that upon 10 years of successful service or three enlistments that the military would pay off his student loans. When he reached the ten-year mark and requested the loans be paid, he was told by his commander that the program was no longer available, and he was responsible for satisfying his student loan obligation. In his answer, he stated he arranged to pay $100 a month on the aggregate amount owed. When he became unemployed, he received a deferment until July 2015. He did not provide documentary proof that he resumed payments in July 2015 (1.l). Applicant indicated that the creditor for the debt in SOR ¶ 1.m ($421) has agreed to accept two payments of $210 that were to be paid on June 1, 2015, and July 1, 2015, to resolve the debt. Applicant did not provide proof he made the payments (1.m). Applicant indicated that the creditor for the debt in SOR ¶ 1.n ($6,286) agreed to accept a payment plan for which he would make monthly payments of $102 for 34 months and accept the total amount of $3,468 to resolve the debt. Applicant did not provide documentary proof of the terms of the agreement or proof of any payments he has made (1.n).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has numerous delinquent debts totaling approximately $34,948 since 2008; Applicant failed to provide documentary proof of payments or resolution for most debts; The applicant's financial problems cast doubt on his current reliability and judgment.

Why the Applicant Was Denied

• Applicant has numerous delinquent debts totaling approximately $34,948 since 2008.
• Applicant failed to provide documentary proof of payments or resolution for most debts.
• The applicant's financial problems cast doubt on his current reliability and judgment.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedApr 23, 2015
• Answer filedMay 19, 2015Applicant elected to have case decided on written record.
• Hearing held—No hearing; case decided on written record.
• Decision dateFeb 19, 2016

Cite For

• Failure to Provide Evidence of Debt Resolution Under Guideline F
• Impact of Financial Irresponsibility on Security Clearance Eligibility
• Consideration of Personal Circumstances in Financial Issues Under Guideline F