Summary
A 45-year-old male defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant acknowledged approximately $29,000 in debt, which he neglected for several years, allowing it to become unenforceable under state law.
The Statement of Reasons detailed various financial obligations, including approximately $29,000 in admitted debt, and about $38,000 in disputed debts for which the applicant denied liability. Specific debts included $1,270 to a communications company, $32,201 to a credit recovery entity, and $1,257.83 for a cellular phone account. The applicant's Personal Financial Statement from July 15, 2004, indicated he was financially capable of addressing these debts.
Despite the acknowledged debt and financial capacity, the applicant failed to provide documentation of efforts to resolve his debts or dispute inaccuracies on his credit report. Consequently, he did not demonstrate rehabilitation or a good-faith effort to repay overdue creditors, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to approximately $29,000 in debt that he neglected until it became unenforceable under state law.
- He failed to provide documentation showing he disputed inaccuracies on his credit report or made efforts to resolve his debts.
- The applicant did not demonstrate rehabilitation or a good-faith effort to repay overdue creditors.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant experienced a period of unemployment and underemployment.
- E2.A6.1.3.1rejectedThe Behavior Was Not Recent
- E2.A6.1.3.2rejectedIt Was an Isolated Incident
- E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The sole purpose of a security clearance determination is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedSep 16, 2005
- Answer filedOct 10, 2005Applicant elected to have the case decided on the written record.
- Hearing held—No hearing was held.
- Decision dateJul 6, 2006
Cite For
- Failure to Mitigate Financial Obligations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of State Statute of Limitations in Financial Assessments for Clearance