Wonga.com allows users to borrow up to £1,000 for up to 30 days but has previously come under criticism for the interest rates it charges. Its website says its representative APR is approximately 4214%.
To borrow £400 for 30 days will require customers to pay back a total of £525.48 when interest and fees are added on.
Nick Forbes, leader of Newcastle City Council, said:
"It sets the tone for the city and I don't want this to be a city built on an image of cheap and irresponsible debt."
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