Difficulty Repaying Your Loan?

1. We will do what we can to help. We understand that circumstances can change which can affect your ability to pay. We may be able to reschedule the loan over a longer period or accept a smaller sum for a short time.
2. It may be a mistake. Missed payment may be due to insufficient funds in your bank account for the standing order to be processed, child benefit not received by us, payroll deduction information incorrect or you may simply have forgotten. When you contact us we’ll help to put things right. Plus, banks will often remove failed standing order charges if you ask them quickly and nicely.
3. It will cost you more. If you get behind on your payments then loan interest will accrue so it will cost you more than if you stick to your loan agreement.
4. Your credit score can be affected. Derbyshire Community Bank shares members’ loan data with credit reference agencies such as Equifax, so missed payments will appear on your credit history and may affect your ability to borrow elsewhere in the future. Credit Union loan applications by others in your household may also be affected by your non-payment due to the increased risk of default.
5. Did you know that you have borrowed from your friends family and neighbours? Our loans are funded by the savings of our other Members and we have duty to them to ensure that loans are repaid.
6. You could lose access to your credit union savings. We will do our best to contact you if you have missed a payment, but if this is unsuccessful then your savings with us may be transferred to reduce your outstanding loan balance, so your savings will no longer be available to you. Even if you have moved address, changed phone number or are no longer entitled to child benefit your debt will still be pursued.
7. A Debt Collection Agency may be employed to recover your outstanding debt. Our reasonable cost of debt collection will be added to your outstanding debt and further costs may be added to cover the costs of debt collection. These can soon add up – it is always best to contact us before this stage is reached – you won’t regret it!
8. Earnings Deduction may be made to recover your outstanding debt directly from your wages.
9. Eligible Loan Deduction Scheme (ELDS) may be used to reclaim your outstanding debt by deduction from your benefits.
10. County Court Judgement may be entered against you if a repayment plan is still not complied with. This will incur further costs and will show on your credit history which may affect your ability to get credit in the future. An Enforcement Officer (previously known as Bailiff) may be appointed to act upon the court judgement.
11. Our door is always open; even if your credit union loan has been outstanding for a while, we will still be really pleased to talk with you and help you clear your debt and improve your credit history.

We really hope that your credit union loan doesn’t reach this stage, it is always best to contact us as soon as possible and talk with us so that an agreement can be reached.

Call us on 01332 348144 to discuss your account and circumstances. We will work with you to find the best solution to make your repayments and maintain your financial wellbeing.

Interest is calculated on the outstanding loan balance and is charged daily at the rate set out in your loan agreement.

Once the balance in your holding saver is higher than your remaining loan balance, you can use the funds in your holding saver to pay off your loan early!

Simple answer is ‘no’.

If you have entered into an individual voluntary arrangement (IVA) then you are restricted to borrowing no more than £500 without obtaining permission from your insolvency practitioner.

When we consider affordability, we will look at other debts, repayments. You are very welcome to join us and save regularly, just a small amount every week or month soon build up into a useful fund for when you need it.

Citizens Advice has an article that explains the things to think about when considering an IVA

IVAs are a legally binding form of debt management that work by freezing your debt for a fixed period, usually 5-6 years. During that time you must commit to paying a monthly amount towards your debt. After the fixed period, any money you still owe will be cancelled but only if you have made all your agreed payments and not been in breach of your agreement.