Background Investigations

Defense Finance Agency Suspends Credit-Related Firings

At first, it looked like 62 workers at Defense Finance and Accounting Service (DFAS)’s military payroll accounting facility in Cleveland, Ohio would lose their jobs due to credit problems. In the past, other DFAS workers in Columbus and Indianapolis had lost jobs because of credit issues.  The Cleveland facility processes pay for active Navy personnel, military retirees, and government officials, including the President.

After some lobbying by local members of Congress, an article in The Plain Dealer explains what happened next…

“The Defense Finance and Accounting Service has agreed to suspend a controversial policy of firing workers for credit reasons while it reviews whether it was necessary to upgrade their security clearances in 2005. The announcement gives a temporary reprieve to 47 workers who were about to lose their jobs.”

“DFAS spokesman Tom LaRock said that since 2001, 54 employees from all DFAS offices have been terminated for not being able to obtain a favorable background clearance…All DFAS positions are classified as sensitive, LaRock said. Because they process people’s pay, employees have access to social security numbers, bank accounts and other sensitive information, he said.”

“It is not top secret or confidential,” he said. “It is considered a background clearance.”

Comment Archive

  1. Avatar

    First, they should be educated on the difference between a security clearance – Top Secret, Secret, Confidential and a background check.

    I wonder if the employee’s were notified of the requirements (background check) prior to accepting employment with DFAS.

    Diane Griffin
    Author of ” Everything you need to know about the security clearance process, but are afraid to ask!

  2. Avatar


    Maybe the govt should not put anyone in a position until they have been cleared. Does little good to have them work and then get rid of them after giving them access to the information!!!!!!!!!!!! People know of the requirements even before applying as it is in the job advertisement.

  3. Avatar

    I recently filled out a sc for a army mos and was unaware of some collections, one recent and three anywhere between one and three years one was 2000 and the others not over 200. On the paper I filled out I put no collections or debts because I didn’t know I had them. I plan on telling my recruiter, but am wondering in which ways all of this will effect me can someone please help me this has got my head a mess.