Summary
A 35-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to nine delinquent debts totaling over $17,284, including two judgments. The Statement of Reasons detailed seven delinquent bank credit card accounts with amounts of at least $2204, $280, and $710, respectively. Additional debts included $223 to one creditor and $3,103 for an automobile loan. The two judgments amounted to $7,593.72 and $2,775.00, with a third judgment of $2,480.00 also noted.
Disqualifying conditions F.1 and F.3 were raised, indicating a history of not meeting financial obligations and an inability to satisfy debts. While mitigating conditions F.3 and F.6 were applied, acknowledging some financial difficulties beyond the applicant's control, these were insufficient to overcome the concerns.
The applicant's security clearance was denied because he failed to make progress on most of his debts, some dating back to 1994. Although the loss of his wife's income from a 1995 accident was a mitigating factor for some debts, an agreement with a credit counseling service did not cover all obligations, and the applicant was unable to maintain the required payments.
Why the Applicant Was Denied
- Applicant has a history of not meeting financial obligations, including nine delinquent debts and two judgments.
- Despite some mitigating circumstances, Applicant failed to make progress in resolving most of his debts, which date back to 1994.
- The agreement with a credit counseling service did not cover all debts and Applicant was unable to make the required payments.
Conditions Referenced
- F.1raisedA History of Not Meeting Financial Obligations
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe loss of the Applicant's wife's income due to her injuries mitigated some debts.
- F.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe Applicant's efforts were insufficient as he did not cover all debts and failed to make payments.
Key Rule Quoted
“Eligibility for access to classified information is predicated upon an individual meeting adjudicative guidelines discussed in Enclosure 2 of the Directive.”
Procedural Posture
- SOR issuedJul 29, 2002
- Answer filedSep 5, 2002
- Hearing heldJan 7, 2003
- Decision dateJun 25, 2003
Cite For
- Denial of Security Clearance Due to Financial Considerations Under Guideline F
- Impact of Long-standing Financial Issues on Security Clearance Eligibility
- Mitigating Circumstances Related to Family Medical Issues and Their Limitations on Financial Obligations