Urgent: Please help.

[Anonymous]

Dear All,

I hope you can help me. I have a major dilemma: I am currently signing up for the u-4 to be a financial advisor for a firm. This, of course, requires extensive background checks. One of the questions asks if I have ever had a "compromise with creditors." The problem is that I have had a compromise with creditors three years ago, and it was taken to collections, and I compromised with collections to reduce the amount owed due to financial difficulties. However, the issue seems to not have been reported to the credit bureaus. It does not show up on my credit reports. I am using TransUnion and I keep doing my own credit reports and it is not showing up. Is this something that I should report? Would the government or a third-party investigation doing a credit check be able to get more information than what is on my credit reports? Please help as I have to make a decision soon. Thank you.

R.

[Anonymous]

Well, the old saying is that honesty is the best policy.  But, as George Carlin has told us, we must understand that by default dishonesty is the second best policy and second best isn't that bad, right?

I would be straight up with this, as you never know when something like this could come back and bite you in the rear.

[Anonymous]

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@Anonymous wrote:

Dear All,

I hope you can help me. I have a major dilemma: I am currently signing up for the u-4 to be a financial advisor for a firm. This, of course, requires extensive background checks. One of the questions asks if I have ever had a "compromise with creditors." The problem is that I have had a compromise with creditors three years ago, and it was taken to collections, and I compromised with collections to reduce the amount owed due to financial difficulties. However, the issue seems to not have been reported to the credit bureaus. It does not show up on my credit reports. I am using TransUnion and I keep doing my own credit reports and it is not showing up. Is this something that I should report? Would the government or a third-party investigation doing a credit check be able to get more information than what is on my credit reports? Please help as I have to make a decision soon. Thank you.

R.

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The text in blue suggests you have recently pulled your credit reports at all three bureaus.  The text in red suggests that the only report you are looking at is your TransUnion report.  Can you clarify?

If you were to decide to shade the truth (and BBS is probably right in his advice not to do that) you should only do that if you have pulled your full report at each bureau using AnnualCreditReport.com and gone over each with a fine tooth comb.  ACR reports are the gold standard and include some things not in a third party report.

Good thoughts by BBS as always.

[Anonymous]

Hi,

Thanks for the input. I am still undecided and have to make my mind by today. I use TransUnion the online website, but within the site I have paid the $29.99 fee to see my credit reports from all three reporters. It is not there. I talked to my creditor who also indirectly claimed that it was not reported to the bureaus. Not sure what to do.

Thanks.

R.

[RobertEG]

The requested disclosure asks if you have ever defaulted.

It does not ask whether the creditor chose to report that default to a credit reporting agency.

Of course, not having been reported to a CRA would shroud the default from independent discovery by others unless it also in the public record, such as a civil judgment on the debt, which could readily be discovered in a standared public records check, but that does not appear to be the case.

I would definately disclose the default if you dont contest its accuracy.

However, if you have defendable basis for contesting the legitimacy of the debt or its default, such as the debt was due to someone else having used your identity, or you contested the default and the creditor then agreed that there was no default in fact, then omitting disclosure could be explained if ever questioned.

[Anonymous]

I work in the financial industry- yes, you need to disclose on your U4. I would check my credit reports and my employer was able to find credit issues that were not on my report. It is best to report on your U4 rather than "hide" this fact- its best to be honest especially for U4 reporting. Good luck!

[Anonymous]

Thanks for the reply. Can you tell me how that is possible, that your employer was able to find things not on your credit reports? So, what does the employer look at? How can I conduct that search myself? Thanks again.

[sarge12]

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@Anonymous wrote:

Dear All,

I hope you can help me. I have a major dilemma: I am currently signing up for the u-4 to be a financial advisor for a firm. This, of course, requires extensive background checks. One of the questions asks if I have ever had a "compromise with creditors." The problem is that I have had a compromise with creditors three years ago, and it was taken to collections, and I compromised with collections to reduce the amount owed due to financial difficulties. However, the issue seems to not have been reported to the credit bureaus. It does not show up on my credit reports. I am using TransUnion and I keep doing my own credit reports and it is not showing up. Is this something that I should report? Would the government or a third-party investigation doing a credit check be able to get more information than what is on my credit reports? Please help as I have to make a decision soon. Thank you.

R.

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I have just read on of these u-4 forms and it contains the following...

1. I swear or affirm that I have read and understand the items and instructions on this form and that my answers (including attachments) are true and complete to the best of my knowledge. I understand that I am subject to administrative, civil or criminal penalties if I give false or misleading answers.

Since it contains that criminal penalties statement, and I do not like prison, there is no way I would lie on that form and sign it...NO WAY!!!!

I would tell the truth and take my chances...even if I knew for a fact they would hove no way of finding out...because I would always worry they would...too much stress!!!