AIBU to panic after discovering a 3 year old default?

[Nicebucket]

I have another similar thread about a separate issue which relates to an incorrect default notice.

However, three years ago I had to leave the country for three months for a family emergency. I couldn't access my bank account and the balance went to zero after some bills being deducted. A Vodafone bill stayed pending and instead of calling/emailing they passed the debt to collection, think it was Lowell's.

I paid it immediately once I was back and assumed it was sorted.

It never came up on my Experian or equifax report and I never thought it would be an issue.

Therefore I didn't declare it to my employer. I work for an investment bank.

However today I discovered that the bloody default was on my call credit report all along. It's just there as a normal account that says satisfied and there is the amount of default on it.

When I joint the job, as part of the background check, I was asked these questions to which I answered No.

1. Have you ever had a debt judgement issued against you? I said no. Because I was told this refers to CCJ
2. Have you made any compromise or arrangements or agreement with your creditors.I said no, I didn't know whether a £100 settled payment to lowells counted as the above.

Is the answer to the above two No even with a default?

Can anyone in HR advise if they even look at defaults of £100, which have been satisfied or are they only looking for massive outstanding debt and court judgements?

Since I passed the background checks now already, should I still raise it to HR? Or just let it be?

I don't think you have anything to worry about. A compromise agreement would be if you were paying a debt off over a period of months. Is like an out of court settlement. You paid the debt promptly and in full.

So I shouldn't say anything to HR?

I paid the debt as soon as I found out about it- apparently it was technically paid 10 months after they debt went to collection, but that's because they were chasing me at the wrong address before that.

I think the answer to all, but especially '2', would be 'No', because you didn't enter into a payment plan, you settled, when you knew about it.

The other one is a definite 'No'.

The amount doesn't matter, they were looking for the truth and an explanation.

They wouldn't sack you for this, I'd keep quiet. You didn't knowingly default, as such.

I've worked in Banking and was a SW, so I've (and my Collegues) had to declare everything.

You presented the facts, as you understood them at the time.

Involving a debt collection agency is just another way of getting you to pay. The records are only with them and the company you owe the money too they are not in the public domain. You answered those questions correctly. With regard to your other thread many debt collection letters are incorrect so calm down and ring the utility company today. Even if in some unimaginable way you do owe the £200 you just pay it. Only if it goes to court and is not found in your favour would you get a ccj. I would think it very unlikely that you need to tell your employer if this happens, do you belong to a union they could advise.

I understand what you mean and the default is rather innocuous looking on the report. It's just like another account and it states it's been satisfied.

I'm not even sure employers would have access to this info. I think HR can't see the full credit report, just the information related to identity fraud, bankruptcies and CCJs and perhaps any open and pending large debts.

I've passed the background check at this company twice since the default was registered and I've also since passed checks for virgin media etc.

But nonetheless, it's still a black mark that's there for a very unfortunate reason

I wouldn't worry about it, it was a silly oversight that you paid in full when you realised. Its hardly the same as teetering on bankrupcy which presumably would lead to you being sacked.

It's not necessarily about the debt, but about honesty and integrity.

I used to be an HR Director in an investment bank and we would question it and possibly discipline. People who lie on CVs get found out in this line of business.

I would go and see your HR person before any report is generated and explain. You'll look a lot better for it and I very much doubt you would get any trouble, as it was unintentional on your part.

Sorry just saw that your report is already through.

NotInGautemala- I've already cleared background checks for two roles at this firm and the default was on my file all along.

I had other issues related to my degree that I had declared straight away back then and I would have declared the default had I know it existed. I only found out yesterday.

I don't know if I should retrospectively talk to them about it? Especially when they've done a check twice and cleared it...

Could you perhaps also share your opinion on the questions on the declaration? Was I right to say no?

And what kind of things do banks normally look for on credit files? Is it just pending debt, CCJ and bankruptcies?