Summary
A 34-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of over $30,000 in delinquent debts. The applicant's financial issues included multiple collection accounts, a car loan, and two judgments. Specific debts included a $2,448 collection account from April 1997, a $35 account from October 1997, two $428 accounts from January 1998, a $303 medical bill from November 1999, and an $11,311 car loan from July 2000. Additionally, a $433 medical judgment was entered in March 2001, and a federal credit union judgment for approximately $14,270 was entered in September 1998.
While the applicant cited a 1996 work-related disability as a contributing factor, he did not take significant action to address his debts until 2004. Although he claimed to have paid off a $1,304 account and paid a $113 collection account on May 16, 2005, after learning about it, the judge found these actions insufficient.
The denial was based on the applicant's overall financial irresponsibility, his failure to proactively address his debts until questioned in November 2004, and his belief that he did not need to pay his bills. Despite some mitigating conditions being considered, the judge concluded that the applicant's financial history warranted the denial of his security clearance.
Why the Applicant Was Denied
- The applicant's financial irresponsibility was evidenced by a history of delinquent debts totaling over $30,000.
- He did not take significant action to repay his debts until after being questioned about them in November 2004.
- The applicant's belief that he did not need to pay his bills contributed to his financial issues.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant's period of disability did not extend beyond 2000, and he had no dependents.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsRepayment efforts were not sustained and were primarily in response to the garnishment.
Key Rule Quoted
“"Failure to pay debts often leads to financial irresponsibility and acts of poor judgment."”
Procedural Posture
- SOR issuedDec 22, 2004
- Answer filedJan 12, 2005Requested a hearing.
- Hearing heldMay 10, 2005
- Decision dateJan 31, 2006
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of a History of Delinquent Debts on Security Clearance
- Consideration of Mitigating Factors Related to Financial Issues