Summary
A 32-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to significant past-due debts totaling approximately $15,000 owed to six creditors. The Statement of Reasons detailed several specific financial obligations. These included a $475 debt delinquent in 1996 or 1997, an $880 overdrawn checking account debt from the early 1990s, and an unpaid cellular phone bill from 1996 or 1997 that went to collections.
Other debts included a personal loan from 1998, which, as of May 2005, stood at $3,612.74 and was being handled by a law firm after payments ceased. The applicant also admitted to owing Citibank approximately $9,352 for five or six student loans defaulted on in 2000. While some debts were resolved, such as one incurred five or six years prior and satisfied in November 2004, and another for at least $328 satisfied in February 2005, the overall financial picture remained problematic.
The judge determined that the applicant's failure to honor financial obligations adversely affected his judgment and reliability. With no indication of improvement in his severe financial duress, granting a clearance was deemed inconsistent with national interest, leading to the denial.
Why the Applicant Was Denied
- The applicant is indebted to six creditors totaling approximately $15,000, all of which are past-due.
- The applicant's failure to honor financial obligations adversely affects his judgment and reliability.
- The applicant is under severe financial duress, with no indication of improvement in his financial situation.
Conditions Referenced
- E2.A6.1.2.1appliedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant did not demonstrate that the conditions leading to his debts were beyond his control.
- E2.A6.1.3.6rejectedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts to resolve his debts were insufficient given the number and amount of outstanding debts.
Key Rule Quoted
“It is not clearly consistent with the national interest to grant or continue a security clearance for applicant.”
Procedural Posture
- SOR issuedOct 7, 2004
- Answer filedNov 19, 2004
- Hearing heldMay 10, 2005
- Decision dateOct 28, 2005
Cite For
- Financial Obligations Impacting Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations Under Guideline F
- The Impact of Severe Financial Duress on Security Clearance Decisions