Summary
A 48-year-old married man with one child was denied a security clearance under Guideline F (Financial Considerations) due to approximately $96,650 in delinquent debts. The Statement of Reasons (SOR) listed 21 delinquent debts, including twelve collection accounts and nine charged-off accounts. One specific debt, totaling $19,999, was canceled in 2011 and dismissed by court order in May 2015.
The applicant attributed his financial difficulties to unemployment during an economic downturn, stating his inability, not unwillingness, to pay. He also provided evidence of paying some non-SOR debts and one SOR debt, and has maintained steady employment since 2012 with no new debts. However, he explicitly stated he does not intend to pay any of the remaining SOR debts, believing they have expired and he cannot be sued.
The judge found that while the applicant demonstrated some responsible financial behavior, his refusal to acknowledge responsibility for the outstanding debts and his stated intent not to repay them were significant concerns. Despite the applicant's claim that the debts were due to an inability to pay, the lack of a good-faith effort to resolve or repay the overdue creditors led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant had 21 delinquent debts totaling approximately $96,650, indicating an inability to meet financial obligations.
- The applicant's assertion that he does not owe the debts due to their age and charge-off status was not accepted as sufficient mitigation.
- The applicant did not demonstrate a good-faith effort to repay overdue creditors or resolve debts, as he stated he would not service any of the SOR debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedAug 19, 2015
- Answer filed—Timely response requested review based on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMay 31, 2016
Cite For
- Denial of Security Clearance Due to Significant Financial Delinquencies Under Guideline F
- Insufficient Mitigation of Financial Concerns Despite Evidence of Past Unemployment
- Applicant's Refusal to Acknowledge Responsibility for Debts as a Factor in Denial