Summary
This case involves a 45-year-old federal contractor employee whose security clearance was denied primarily under Guideline F (Financial Considerations), with a Guideline E (Personal Conduct) issue resolved in his favor. The applicant's financial difficulties stemmed from poor real estate investments and a plant closing.
The Statement of Reasons detailed several financial delinquencies, including an unpaid credit card debt from December 1999 for $2,978.17, a November 1996 repossession deficiency of $5,845.00, and multiple collection accounts, some disputed and some unpaid, dating from September 1999 to September 2001. One collection account from November 2002 for $191.00 was paid. Additionally, the applicant answered "No" to Standard Form 86, Question 38, regarding being over 180 days delinquent on any debts in the last seven years, despite the listed delinquencies.
Despite demonstrating a monthly surplus and the ability to repay his debts, the applicant failed to provide evidence of repayment. While his financial difficulties were partly due to circumstances beyond his control, he did not demonstrate a good faith effort to resolve his outstanding debts, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant has a history of unpaid debts dating back to 1996.
- He failed to provide evidence of repayment of debts despite having a monthly surplus.
- The applicant's financial difficulties were compounded by circumstances beyond his control, but he did not demonstrate a good faith effort to resolve his debts.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations Disqualifying ConditionA history of not meeting financial obligations.
- E2.A6.1.2.3raisedFinancial Considerations Disqualifying ConditionInability or unwillingness to satisfy debts.
- E2.A6.1.3.3rejectedFinancial Considerations Mitigating ConditionThe conditions that resulted in the behavior were largely beyond the person's control.
- E2.A6.1.3.6rejectedFinancial Considerations Mitigating ConditionThe individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts.
Key Rule Quoted
“"[No] one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedMay 24, 2004
- Answer filedJul 6, 2004
- Hearing held—Applicant declined to submit a response to the FORM.
- Decision dateMar 31, 2005
Cite For
- Denial of Security Clearance Due to Financial Instability Under Guideline F
- Failure to Demonstrate Good Faith Effort to Resolve Debts
- Resolution of Personal Conduct Issue in Favor of Applicant Under Guideline E