Summary
A 59-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to 20 alleged financial delinquencies. The applicant admitted to 11 specific debts, including a repossessed vehicle debt of $5,942, a bank debt of $3,164, and several collection agency debts ranging from $424 to $3,097. Other admitted debts included a delinquent store credit card for $555, a delinquent credit card for $1,616, and a medical debt of $85. The applicant also admitted to an unstated amount on another delinquent account.
However, the applicant denied allegations of a $1,100 debt to the IRS for 2011 income taxes and unpaid child support. While two debts were resolved, the applicant failed to demonstrate responsible action toward the remaining 17 unresolved delinquent debts.
The denial was based on the applicant's lack of financial responsibility, ongoing financial problems that were not addressed in a timely manner, and the absence of evidence for financial counseling or efforts to resolve the outstanding debts. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c), and AG ¶ 20(e) were applied but ultimately did not overcome the security concerns.
Why the Applicant Was Denied
- The applicant has 17 unresolved delinquent debts, indicating a lack of financial responsibility.
- The applicant did not provide evidence of financial counseling or efforts to resolve debts.
- The applicant's financial problems are ongoing and have not been addressed in a timely manner.
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 That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant's unemployment was beyond his control, he failed to act responsibly to address his debts.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant resolved only two debts and did not demonstrate efforts to address the remaining debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant presented no evidence of financial counseling.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant provided no documented proof of disputes with creditors.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 23, 2015
- Answer filedAug 11, 2015Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateMar 31, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Demonstrating Responsible Financial Behavior
- Impact of Financial Delinquencies on Security Clearance Eligibility