Summary
A 38-year-old transportation clerk was denied retention of his Secret security clearance under Guideline F (Financial Considerations) due to a history of unresolved financial difficulties. The Statement of Reasons detailed ten past due debts totaling $12,428.94, including a $334 charged-off credit card debt from September 1992, a $1,754 charged-off engagement ring balance from March 1996, and an approximately $5,300 outstanding balance on a corporate credit card canceled in October 1995. Additionally, the applicant had a bounced check for $144 and approximately $84,000 in mortgage debt on a house valued between $85,000 and $98,000.
Disqualifying conditions F.1 and F.3 were raised, indicating a pattern of financial irresponsibility and an inability to meet financial obligations. While mitigating conditions F.3 and F.4 were applied, acknowledging some efforts or intentions, they were ultimately insufficient.
The denial was based on a six-year history of primarily self-inflicted financial problems, with no clear indication that these issues were being resolved or brought under control. The applicant's decision to remain in a house with unaffordable mortgage payments and to incur additional household expenses further contributed to the decision. Despite expressing a verbal willingness to satisfy his debts, the judge found a lack of effective action, follow-up on debt consolidation or refinancing intentions, and ongoing, unresolved financial problems.
Why the Applicant Was Denied
- The applicant demonstrated a six-year history of financial difficulties, primarily self-inflicted.
- He failed to show a clear indication that his financial problems were being resolved or were under control.
- The applicant's decision to remain in a house with unaffordable mortgage payments and to take on additional household expenses weighed against him.
Conditions Referenced
- F.1raisedA History of Not Meeting Financial Obligations
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile some difficulties arose from divorce and a brother's death, the applicant's choices contributed to his financial situation.
- F.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 ControlThe applicant's past assistance from debt consolidators and lack of follow-up on counseling did not demonstrate effective resolution.
Key Rule Quoted
“"The clearly consistent standard indicates that security-clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedOct 2, 1997
- Answer filedDec 12, 1997Notarized response to SOR.
- Hearing heldMar 2, 1998Applicant testified with one witness.
- Decision dateMar 27, 1998
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Insufficient Evidence of Debt Resolution Efforts
- Impact of Personal Choices on Financial Obligations