Summary
The applicant, a 43-year-old contractor with a history of unemployment, faced security concerns under Guideline F due to nine delinquent debts totaling approximately $22,901. Despite attributing his financial issues to past unemployment, he failed to provide evidence of resolution or responsible financial management, leading to the denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a – 1.b (consumer collection accounts $8,510; $2,177) (1.a). SOR ¶ 1.a – 1.b (consumer collection accounts $8,510; $2,177) (1.b). SOR ¶ 1.c (charged-off consumer account $1,396) (1.c). SOR ¶ 1.d – 1.i (five collection accounts and a charged-off account $1,182; $1,105; $587; $546; $20; $7,378) (1.d).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c. The judge applied mitigating conditions F.2.b, F.2.a, F.2.c, F.2.d, F.2.e. The decision turned on the following: Applicant has nine unresolved delinquent debts totaling approximately $22,901; He did not provide evidence of payment, payment plans, or financial counseling; The applicant's financial problems were recent and unresolved, raising concerns about his reliability.
Why the Applicant Was Denied
- Applicant has nine unresolved delinquent debts totaling approximately $22,901.
- He did not provide evidence of payment, payment plans, or financial counseling.
- The applicant's financial problems were recent and unresolved, raising concerns about his reliability.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's financial issues were attributed to periods of unemployment.
- F.2.arejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- F.2.crejectedReceived or Is Receiving Counseling for the Problem
- F.2.drejectedInitiated a Good-faith Effort to Repay Overdue Creditors
- F.2.erejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedAug 13, 2015
- Answer filedSep 3, 2015Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateMay 12, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Instability on Security Clearance Eligibility
- Consideration of Whole-person Concept in Financial Cases