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Did you have a thorough neurological exam after the incident?
If I understand correctly the incident was 7 years ago, so whatever would and should have healed would have done so by now. Short term memory issues are associated with anxiety and depression. Further as we age there is a natural deterioration in our short term memory. I would definitely obtain a neurological work up.
If you find it embarassing and need to come up with some one's name, everyone will understand a brief statement to the effect "I'm sorry but I am so bad with names". I have done it myself and just about everyone can relate to it and not become offended so I would not worry about it.
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