Derbyshire Community Bank (Erewash Credit Union)

Derbyshire Community Bank is a credit union serving people in and around Derby. It offers a savings account to every member, a Family Loan repaid out of Child Benefit, and a debt consolidation loan, along with budgeting support and financial education¹.

If you arrived here searching for Erewash Credit Union, it is the same organisation: Erewash Credit Union Limited trades as Derbyshire Community Bank, and the FCA Register lists Derbyshire Community Bank as its current trading name⁴. It is a credit union, which means a non-profit, community-based organisation owned by its members rather than by outside shareholders⁵.

Membership itself is free to join, and the bank says it does not charge administration or exit fees on its loans⁶. Its savings are covered by the Financial Services Compensation Scheme, which the bank states protects eligible deposits up to £120,000 from 30 November 2025⁷.

What Derbyshire Community Bank offers members

The core of the offer is a savings account and loans. Every account comes with a regular savings account as standard when you join, and the bank says you can access your savings at any time and transfer money from your savings account to your bank account through online banking¹.

Savings held with a credit union are often described as shares, because members are part-owners rather than customers in the ordinary sense⁵. That matters less for day-to-day use than for what happens if the credit union fails, which is covered below.

Alongside savings, the bank offers loans and what it calls budgeting support, financial education, membership benefits and debt management plans³. The two named loan products on its site are the Family Loan, repaid from Child Benefit, and a debt consolidation loan. Both are covered in their own sections below.

If you are comparing what a credit union offers against a bank or building society, the credit unions guide sets out how the sector works, and the savings guide and loans guide cover the wider market. Credit unions are also listed in the banks directory and the lenders directory.

Child benefit loans: who can apply and how repayment works

The Family Loan is a loan repaid with Child Benefit. To qualify, Derbyshire Community Bank says you must:

• be over 18
• receive Child Benefit and provide proof of it
• have a bank account for payment of the loan
• have your Child Benefit paid into a credit union account
• not be bankrupt, under an IVA or a DRO

Applications are subject to affordability checks².

Repayments are set weekly or four-weekly to fit your child benefit schedule, and the bank says it will use your child benefit payments to repay the loan. Any leftover child benefit can be saved with the bank, withdrawn weekly or monthly, or split between savings and withdrawal².

The application process is online: you submit a loan application by logging in as a member or joining as a new member, and the bank confirms whether you have been successful. Loan agreements are signed with an e-signature, so there is no need to call in or post forms. Derbyshire Community Bank says most applications get a same-day decision, but it can take one to two days during busy periods².

Child Benefit loans are not unique to this credit union. Other credit unions describe the same shape of product, with repayments made from an agreed benefit and the option to reapply or top up without a full application each time once your Child Benefit is paid into your credit union account¹⁰. Some credit unions accept a wider list of benefits for repayment, including Child Tax Credit, Working Tax Credit, PIP, DLA, Carer's Allowance, State Pension, Pension Credit, ESA and Income Support¹⁰.

Debt consolidation loans from Derbyshire Community Bank

A debt consolidation loan joins all your debts together, usually by taking out a loan and using the money to pay back the people you owe¹⁴. Derbyshire Community Bank describes its version as affordable debt consolidation loans that simplify your finances by combining existing debts into one manageable repayment³.

The bank says it does not charge administration fees or exit fees on its loans, and that it may require you to cancel credit cards or reduce your agreed overdraft to help keep your finances under control. It also notes that some other lenders charge an exit fee if you end a loan early³.

Debt consolidation is not a solution on its own, and it is worth being clear about what it does and does not change. It replaces several repayments with one, but the total debt is the same and the interest you pay over the life of the new loan may be more or less than what you were paying before. Consolidating unsecured debts into a loan secured against your home changes what can happen if you fall behind, because the debt becomes tied to the property.

Other credit unions offer debt consolidation loans with different eligibility rules. One restricts them exclusively to employees of its salary deduction partners, with borrowing between £2,500 and £15,000¹⁵. Another lends between £1,500 and £15,000 to members¹⁶. The debt guide covers the full range of options, including free advice services, and the loans guide explains how loan pricing works.

How Derbyshire Community Bank's fees and charges work

Derbyshire Community Bank charges a free membership joining fee, so there is nothing to pay to become a member⁶. On loans, the bank says it does not charge administration fees or exit fees, and its Family Loan carries no hidden charges, fees or early repayment penalties².

Where charges do arise, they are specific and listed on the bank's fees page. The bank publishes a bill payments transaction fee and a dormant account annual fee charged on accounts with 12 months of inactivity, and it says debt collection fees charged to the bank are added to the loan amount, with the values it publishes indicative only⁶. Because the site does not carry product rates, check Derbyshire Community Bank's own fees page and your loan agreement for the figures that apply to you.

For comparison, other credit unions structure charges differently.

The practical point is that credit union charges are usually small and itemised rather than built into a rate.

Joining and applying online

You can join Derbyshire Community Bank online as a new member, or log in if you already hold an account, and submit a loan application from there². The bank confirms whether your application has been successful, and Family Loan agreements are signed with an e-signature².

Credit unions generally ask for proof of identity and address when you join. One publishes that you can apply online or join in branch with two forms of identification¹⁷. Another lets you apply online at any time¹⁸. If you are not already a member, one credit union's family loan page says you can join at your nearest branch or by completing an online application¹⁹.

Eligibility for a credit union is normally tied to a common bond, such as where you live or work. Derbyshire Community Bank's own eligibility rules for its Family Loan are set out above; for membership generally, check its site or the credit unions guide, which explains how common bonds work and how to find a credit union you qualify for.

Your rights under a Derbyshire Community Bank loan agreement

The loan terms give you a right to withdraw. You are entitled to withdraw from the agreement without giving any reason within 14 days beginning with the day after the day you receive a copy of the executed agreement. If you do, you must repay what you owe without delay and no later than 30 calendar days beginning with the day after the day you gave notice⁹.

You are also entitled to repay your indebtedness early, in whole or in part, by writing to Derbyshire Community Bank at its registered address⁹. Interest accrues on and is added to the loan amount on a daily basis at the rate stated in the Loan Details⁹.

The agreement also sets out what you must do as a borrower:

• inform the bank of changes to your finances or address
• continue to save while repaying
• repay the full balance including any unpaid interest or recovery costs
• allow savings to be used against the loan if you fall behind
• permit deductions from benefits via the DWP²⁰

You may not transfer or assign your rights or obligations under the agreement without the bank's prior written consent, while the bank can transfer all or any of its rights and obligations to another organisation without affecting your rights⁹.

Where two or more people entered the agreement as borrower, they are jointly and severally liable, meaning each borrower can be individually held fully liable for all of the borrower's obligations, including payment⁹.

If you fall behind on repayments

Derbyshire Community Bank says it monitors accounts daily, and that if you contact it first, it can often resolve things quickly. It also says that if your situation is affecting your mental health or involves gambling, it can connect you with trusted organisations that offer confidential support²⁰.

The consequences of missing payments are set out plainly in the loan terms. Missing payments could have severe consequences, including legal proceedings which could result in any outstanding debt being secured against any property you own, a demand for immediate full repayment, and registration with credit reference agencies⁹. The bank may, after giving you a default notice in writing, end the agreement and require you immediately to pay the outstanding balance less any rebate⁹. Grounds for ending the agreement include failing to pay any repayment within seven days of its due date, providing materially false or inaccurate information, persistent breaches, or the bank having reason to believe you will no longer be able to afford the repayments⁹.

More generally, regulated creditors must send you arrears letters if you fall behind, and a missed payment will show on your credit file as being behind with your payments²¹. Extra charges are often added when payments are missed²³. If you miss payments on a credit union loan, the credit union may be able to use your savings to repay the loan²⁴.

Court action to collect a debt in England and Wales can only be taken after your account defaults²¹. If a County Court Judgment is made against you, check your credit report with Experian, Equifax or TransUnion, and if you think you might miss a payment, contact the lender as quickly as possible to discuss your options²⁵.

Free, impartial help is available. The debt guide sets out the options, and the credit scores guide explains how missed payments and judgments affect your file.

Complaints and the Financial Ombudsman

Derbyshire Community Bank is part of the Financial Ombudsman Scheme, and if a member or complainant is unhappy with its handling or response, they can take the complaint to the Financial Ombudsman Service²⁷. You can complain by email to complaints@dcbank.org.uk, in person to staff or volunteers, or by letter to The Complaints Officer, Derbyshire Community Bank, CUBO, Victoria Street, Derby, DE1 1EQ²⁸.

The bank publishes a Complaints Procedure guide for members, available online with a paper copy on request²⁸. If a complaint cannot be resolved quickly, an acknowledgement will be sent within 5 days of receipt. If it is still unresolved within 8 weeks, the bank will send a final response²⁷.

If you are unhappy with the final response, or the timeframe has passed, you can take your complaint to the free Financial Ombudsman Service²⁹. Under the Consumer Credit Act 2006 there are rights to complain to the Financial Ombudsman Service about how your lender has treated you³⁰. Credit unions generally are covered by the ombudsman, and one states plainly that if it cannot resolve a complaint to your satisfaction, you may refer it to the Financial Ombudsman Service³¹.

The consumer protection guide explains how the ombudsman and other protections work in practice.

FSCS protection for Derbyshire Community Bank savings

Derbyshire Community Bank states that eligible deposits are protected up to £120,000 from 30 November 2025 by the Financial Services Compensation Scheme, and that should the bank go out of business, your savings are paid back to you from the FSCS⁷. Credit union savings are protected by the FSCS⁵.

The limit applies per person, per firm. Where several brands share one licence, savings held across them count together towards a single limit, so it is worth checking which brands sit under the same authorisation before assuming each is separately covered. Not everything is covered: credit insurance, for example, is not eligible for FSCS protection³³.

The savings guide explains how the FSCS limit works across accounts, and the consumer protection guide covers what happens when a financial firm fails.