I got caught 7 years ago for stealing from an employer. Two men from the company sat me in a room and scared me completely and I broke down and admitted the crime. They made me state in writing I would pay it back but asked to wait on payment until further verification on where to send the payments. The next day I was let go and never heard from them again. Now when I fill out applications and I get asked if I have been convicted of crimes, I am not sure what to answer. I feel terrible. I was younger and used poor judgement. What should I do?

If you have never been to court for this.. you can answer in all honesty, that you have never been convicted of it. Its only a conviction if you are found guilty at a trial, or you plead guilty in front of a judge.

You should write that you don't have crime records because if you had one you would have been called to court for once of course

Two men in a back room scaring you ( although it may work very well) is not conviction, A conviction is where the police are called, you are arrested or given a summons to report to court. You go to court and are convicted or plead guilty.

So no there is no conviction of any crime on your record.

Now on the moral side, you need to go back to that store, and pay them the money you owe them. It will help clear your mind of this.