Newcastle City Council says that its pension fund does invest in the payday loan company Wonga, but it has no control over it.
It added that the council has voiced its dislike that the pension fund invests in companies which it believes 'harms the city'.
Citizens Advice's chief executive Gillian Guy said payday lenders must focus on customer welfare, not profits, after Wonga released strong figures today.
The Church of England said it was "committed to exploring" a credit union scheme but warned it would not be in place until 2014 at the earliest.
The Archbishop of Canterbury said he wanted to compete Wonga out of business by developing the Church's own credit business.
Payday lender Wonga has reported surging profits as its number of customers swelled to more than one million.
- Profits after tax rose 36% to £62.5 million during 2012 - the equivalent of more than £1 million a week.
- Revenues surged 67% to £309.3 million.
- The controversial online lender lent £1.2 billion in the year, a rise of 68%.
Ahead of Newcastle United's first game of the season, Wonga representatives will meet fans to discuss their sponsorship deal and any concerns relating to it. The payday lender has also invited local MPs to a public forum this afternoon.
Newcastle United striker Papiss Cisse has reportedly agreed to wear a shirt which bears the club's primary sponsor Wonga.
The Senegal international had refused to wear the jersey displaying the pay-day lender's logo on religious grounds, as earning interest is forbidden by Islamic Law. The 28-year-old even pulled out of the club's pre-season tour of Portugal over the issue.
However, it's understood that after weeks of negotiations the club and Cisse have reached a resolution, with the player finally agreeing to wear the shirt.
Work has begun on removing the Sports Direct signs at Newcastle stadium.
The stadium will return to its original name, St James' Park, following Wonga.com's sponsorship of the club next season.
As part of the sponsorship deal, the name of the stadium will return to St James' Park.
Newcastle United's new sponsors Wonga have announced they will rename the club's stadium St James' Park.
Today the football club announced a new four year deal which will see the internet loan company become the club's lead commercial sponsor.
Wonga also secured the naming rights to the stadium, currently known as the Sports Direct Arena, and will reinstate the old name of St James' Park.
But the decision was met with anger on Tyneside with council leaders and MPs expressing reservations with the deal.