DFAS employees can be suspended, fired over credit scores

A contingent of Ohio lawmakers asked the Defense Finance and Accounting Service to temporarily shelve a policy which suspends or terminates employees who post low credit scores.

In a March 24 letter to DFAS Director Teresa McKay, Rep. Dennis Kucinich, D-Ohio, and three other members of the Ohio congressional delegation requested the agency hold off on a policy that has resulted in what the lawmakers called an “unjust suspension of employees.” The letter noted that longtime DFAS employees have been fired after a background check reported their low credit scores.

“While we agree that there may be compelling reasons to hold employees requiring security clearances to a more stringent code of personal conduct and financial standard,” the letter said, “the exclusive use of bad credit, for example, as ground for suspension or termination of employment raises questions of intent.”

Lawmakers also noted that DFAS, under DOD policy, should be doing more to help employees who are struggling from financial stress. The letter asked that DFAS withhold any such firings until Congress has a chance to review the policy.