Is collections debt an issue during background checks?

Hi everyone,

I want to know if the derogatory account on my credit report is an issue going into my internship. I will be interning at the Federal Reserve Bank in February and TD Bank in the summer. The account is the final bill balance of a phone from Verizon that was never sent to me. Sprint, my new carrier, was supposed to pay the etf once the final bill was delivered. Now, the account has been moved to my credit report but hasn't effected my credit score since I have no information. I've disputed the account twice. Will this be an issue?

If it helps, I'm a sophomore with no criminal records or other suspicious activities.

2 Comments
 
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It would be an issue only if the employer required an absolutely perfect credit record, I think. Skipping out on, or missing the final month's phone bill is reallyreally common.

It won't be an issue at the Fed. Their background investigation is a National Agency Check. That turns up stuff like whether you've been arrested, outstanding warrants, etc. Probably the only financial ding that would come up is if you'd been declared bankrupt. See https://www.federalreserve.gov/careers-new4hire-forms.htm

Dunno if it would be an issue for TD but almost certainly not for IBD summer interns. The toughest level of financial scrutiny would be for those hires expected to actually handle cash, i.e., tellers.

 

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