Summary
A 37-year-old draftsman for a defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant had accumulated over $13,000 in delinquent credit card debts between 1997 and 2003. These debts included multiple credit cards from various banks and a credit card from a department store, with several accounts having gone to collection agencies. Additionally, the applicant had an outstanding telephone bill in collection.
The Statement of Reasons detailed nine specific allegations of debt, encompassing credit card debts to a bank, a credit card company, and a department store, as well as two credit card accounts in collection with the same agency for the same department store. Another credit card debt was in collection with that same agency but for a different credit card company, and a telephone bill was also in collection.
The judge determined that the applicant failed to mitigate the financial concerns. Despite acknowledging the debts, the applicant took no action to satisfy them, instead prioritizing student loan payments. This was seen as a lack of good-faith effort to repay overdue creditors, leading to the conclusion that the applicant's financial irresponsibility raised unmitigated security concerns, resulting in the denial of the security clearance.
Why the Applicant Was Denied
- The applicant admitted to having over $13,000 in delinquent debts and took no action to satisfy them.
- The applicant prioritized student loan payments over resolving delinquent credit card debts, indicating a lack of good-faith effort to repay overdue creditors.
- The applicant's financial irresponsibility raised security concerns under Guideline F.
Conditions Referenced
- E2.A6.1.2.2raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not RecentThe applicant's debts were incurred as recently as 2003.
- E2.A6.1.3.2rejectedIt Was an Isolated IncidentThe applicant had multiple debts across different accounts.
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant did not establish any conditions beyond his control.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant did not make any effort to pay overdue creditors.
Key Rule Quoted
“A security concern exists for an individual who is financially irresponsible.”
Procedural Posture
- SOR issuedDec 21, 2004
- Answer filedJan 24, 2005Applicant admitted all allegations.
- Hearing held—Applicant elected to have the matter decided on the written record.
- Decision dateMay 31, 2005
Cite For
- Financial Irresponsibility Under Guideline F
- Lack of Good-faith Effort to Resolve Debts
- Criteria for Evaluating Financial Considerations in Security Clearance Cases