Summary
A 35-year-old married software engineer with two minor children was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent consumer credit debts. The Statement of Reasons cited two specific credit card accounts: one for $1,685.00, charged off in November 2000, and another for $7,758.00, charged off around March 2002. These debts totaled nearly $9,500.
Disqualifying conditions related to financial irresponsibility were raised, while several mitigating conditions were considered. However, the applicant had ignored these debts for at least three years and, despite participating in a credit counseling program, terminated it without resolving his obligations.
The denial was based on the applicant's failure to demonstrate a good-faith effort to repay his overdue creditors or to mitigate the financial concerns. This lack of action raised questions about his financial responsibility and reliability, leading to the final decision.
Why the Applicant Was Denied
- Applicant has two delinquent consumer credit debts totaling nearly $9,500 that he has ignored for at least three years.
- He participated in a credit counseling program but terminated it before completion and did not resolve his debts.
- Applicant failed to demonstrate a good-faith effort to repay overdue creditors or to mitigate the financial concerns raised.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not RecentDebts are considered recent as they remain unpaid.
- E2.A6.1.3.2rejectedIt Was an Isolated IncidentDebts accumulated over time and were not isolated.
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlApplicant was gainfully employed throughout the period.
- E2.A6.1.3.4rejectedThe Person Is Receiving Counseling for the Problem and There Is a Clear Indication That the Problem Is Being Resolved or Is Under ControlApplicant discontinued counseling and has not made payments.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has not made any payments or contacted creditors.
Key Rule Quoted
“Financial considerations are a security concern because an individual who is financially overextended is at risk of having to engage in illegal or unethical acts to generate funds to meet financial obligations.”
Procedural Posture
- SOR issuedJul 12, 2005
- Answer filedAug 2, 2005Applicant responded pro se.
- Hearing held—
- Decision dateFeb 17, 2006
Cite For
- Denial of Clearance Due to Significant Delinquent Debts Under Guideline F
- Failure to Mitigate Financial Concerns Despite Previous Counseling
- Consideration of the Whole Person Concept in Financial Responsibility Cases