Translation:I forgot the password.
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You should feel free to report that as correct. The sense can easily be interpreted as "I (now) forget the password" or "I have forgotten the password".
Especially for a dynamic verb (as opposed to a stative verb) often you can interpret verb-了 (as opposed to sentence-了) as equivalent in sense to the English past tense, but it's also true that there aren't really tenses in Chinese, and "了" has a number of related senses that can't really be expressed in terms of the idea of verb tense.
An added complication in this particular case is that "I forget" seems to be stative rather than dynamic, whereas "I forgot" seems to be dynamic rather than stative.
In this case I think "forget", "have forgotten", and "forgot" are all legitimate. In fact the first two are both technically better than the third.