Summary
A 26-year-old machinist was denied a security clearance under Guideline F, Financial Considerations, due to unresolved delinquent debts totaling approximately $28,850, accumulated between 2009 and 2012. The Statement of Reasons (SOR) alleged the applicant remained indebted to five creditors for these amounts.
While the applicant provided evidence of paying six other SOR-alleged debts, totaling $1,277, and stated he was making payments on two of the largest outstanding debts ($10,365 and $15,804), he did not provide documentary proof for these larger payments.
The denial was based on the applicant's continued indebtedness to five creditors for the $28,850, and a lack of sufficient evidence of financial management or counseling. These ongoing financial issues raised concerns about the applicant's judgment and reliability, leading to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant remains indebted to five creditors for debts totaling approximately $28,850.
- The applicant did not provide sufficient evidence of financial management or counseling to mitigate security concerns.
- The applicant's ongoing financial issues raised doubts about his judgment and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlApplicant did not provide evidence that circumstances beyond his control contributed to the delinquent debts.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThere is no evidence that the applicant participated in financial counseling.
- AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsApplicant resolved six of the eleven debts, indicating a good-faith effort.
- AG ¶ 20(e)rejectedDispute Legitimacy of Past-due DebtApplicant did not dispute any of the alleged debts.
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 issuedSep 18, 2015
- Answer filedOct 22, 2015
- Hearing held—Decided on the written record without a hearing.
- Decision dateJun 27, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Management as a Basis for Mitigation
- Impact of Financial Irresponsibility on Security Clearance Eligibility