Summary
A Department of Defense contractor with a Master's Degree was denied a security clearance under Guideline F, Financial Considerations, due to multiple unresolved delinquent accounts totaling approximately $50,189. The Statement of Reasons detailed nine specific debts, including a $38,178 student loan from December 2012, an $8,942 charged-off automobile account from November 2011, and various collection accounts for medical bills, utilities, a credit card, and other services, with dates ranging from January 2010 to September 2013.
The applicant admitted to these debts, which raised Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c). However, the applicant failed to provide sufficient evidence of efforts to resolve these financial obligations.
Despite consideration of Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e), the security clearance was denied. The decision concluded that the applicant's financial issues were ongoing and unresolved, and that the applicant had not demonstrated adequate mitigation of the financial concerns.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent accounts totaling approximately $50,189.
- The applicant did not provide evidence of efforts to resolve the delinquent debts.
- The applicant's financial issues were ongoing and unresolved.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial problems were partially due to his divorce in 2010.
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant incurred delinquent accounts from 2010 to 2014, and ongoing issues were present.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not attend financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant did not demonstrate a good-faith effort to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtThe applicant did not provide proof of disputing debts.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedApr 9, 2015
- Answer filedApr 22, 2015Applicant requested a decision on the record.
- Hearing heldMar 24, 2016FORM forwarded to Hearing Office.
- Decision dateJun 14, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Providing Evidence to Mitigate Financial Concerns
- Impact of Ongoing Financial Issues on Security Clearance Eligibility