Summary
A 30-year-old test technician was denied a security clearance under Guideline F (Financial Considerations) due to approximately $9,500 in unresolved debts owed to six creditors. The Statement of Reasons detailed ten specific financial allegations. These included unpaid debts such as $874 and $937 to collection agencies, $299 for an electric bill, $152 for a medical bill, and $317 for a telephone debt. A significant outstanding debt of $6,906 resulted from an automobile repossession.
While some debts were resolved, such as $45 and $100 for medical bills, and a $395 telephone debt that was deleted from his credit report after renewing a contract, several remained unpaid. The applicant disputed the balance of one collection agency debt and denied owing $84 for a cable bill, which last reported in January 1999. He also stated an intention to pay a $152 medical bill by April 15, 2005.
Despite demonstrating good character and work performance, the applicant's financial difficulties were deemed insufficiently mitigated. The denial was based on his admission of the $9,500 in unresolved debts, a failure to demonstrate a systematic debt management plan, and a lack of good-faith effort to repay overdue creditors. The applicant's financial situation was not considered under control, and applicable mitigating conditions were not sufficient to overcome the security concerns.
Why the Applicant Was Denied
- The applicant admitted to owing approximately $9,500 in unresolved debts to six creditors.
- The applicant failed to demonstrate a systematic method for managing his debts or a good-faith effort to repay overdue creditors.
- The applicant's financial difficulties were not shown to be under control, and mitigating conditions did not apply.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.2.1rejectedThe Behavior Was Not RecentThe conduct is recent since the debts remain unpaid.
- E2.A6.1.2.2rejectedIt Was an Isolated IncidentThere are multiple debts, not an isolated incident.
- E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlSeeking financial consulting does not equate to a demonstrated track record of financial reform.
- E2.A6.1.2.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThere was no evidence of ability or desire to repay debts.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances so as to meet his financial obligations.”
Procedural Posture
- SOR issuedMar 30, 2004
- Answer filedJun 30, 2004
- Hearing heldMar 30, 2005Record kept open for additional documents.
- Decision dateSep 23, 2005
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Rehabilitation
- Application of Disqualifying Conditions Under Guideline F