Summary
A 29-year-old engineer working for a Department of Defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial delinquencies and late payments. The Statement of Reasons detailed several outstanding debts, including an unpaid ROTC debt exceeding $13,000, approximately $4,524 in credit card debt (reduced from $7,404 using a $2,500 401K loan), and about $1,467 in back child support.
Additional financial concerns included a student loan, originating in 1995, which had grown from $1,065 to $1,890 with interest, despite a $51.70 monthly payment plan. The applicant also owed $114 on an account delinquent since 1999. Disqualifying Conditions 1 and 3 were raised, while Mitigating Conditions 3, 4, and 6 were considered.
Ultimately, the clearance was denied because the applicant demonstrated a history of not meeting financial obligations and failed to make credible efforts to resolve significant debts, specifically the $13,000 ROTC debt and child support arrears. This financial irresponsibility raised concerns about his ability to protect classified information.
Why the Applicant Was Denied
- Applicant has a history of not meeting financial obligations.
- Applicant has not made credible efforts to resolve significant debts, including a $13,000 ROTC debt and child support arrears.
- Applicant's financial irresponsibility raises concerns about his ability to protect classified information.
Conditions Referenced
- DC 1appliedA History of Not Meeting Financial Obligations
- DC 3appliedInability or Unwillingness to Satisfy Debts
- MC 3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlApplicant was underemployed after college, contributing to financial issues.
- MC 4rejectedThe Person Has or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlUnclear if applicant received proper credit counseling.
- MC 6appliedThe Individual Initiated Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has made consistent payments on some debts but failed to address others.
Key Rule Quoted
“No one has a right to a security clearance and "the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedAug 24, 2004
- Answer filedSep 13, 2004
- Hearing heldJan 13, 2005
- Decision dateFeb 1, 2005
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of the Whole Person Concept in Security Clearance Decisions