Summary
The applicant, a 58-year-old technician, sought a top secret security clearance but was denied due to approximately $23,386 in delinquent debt and an inability to repay it. Despite expressing intent to resolve his debts, the judge found insufficient evidence of financial responsibility and a lack of timely actions to address the debts.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $1,003 balance in collection (1.a). $2,250 department store revolving charge debt (1.b). $9,940 on a car loan consigned for his son (1.c). $5,090 bank credit card debt (1.d). $4,813 consumer credit balances (1.e). $255 consumer credit balance (1.f). $455 wireless account charged off (1.g). $161 cellular phone debt (1.h). $350 cable television debt (1.i). $202 unpaid cable television debt (1.j). $236 veterinary bill (1.k). $472 debt that appeared on his credit report was his son's debt (1.l). $55,234 second mortgage debt (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant owed approximately $23,386 in delinquent debt that he lacked the means to repay; Applicant's promises to satisfy the debt were not sufficient to mitigate financial concerns; Applicant exhibited poor financial judgment by allowing multiple accounts to go to collection.
Why the Applicant Was Denied
- Applicant owed approximately $23,386 in delinquent debt that he lacked the means to repay.
- Applicant's promises to satisfy the debt were not sufficient to mitigate financial concerns.
- Applicant exhibited poor financial judgment by allowing multiple accounts to go to collection.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant did not act responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemApplicant's minor payments were insufficient to demonstrate resolution.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsApplicant's promises to repay were not backed by a track record of repayment.
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural Posture
- SOR issuedSep 28, 2006
- Answer filedNov 6, 2006Applicant elected for a determination on the written record.
- Hearing held—No hearing; determination made on the written record.
- Decision dateMar 19, 2007
Cite For
- Financial Considerations Under Guideline F
- Impact of Delinquent Debt on Security Clearance Eligibility
- Insufficient Evidence of Financial Responsibility as a Basis for Denial