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."
More top news
Police are investigating a third claim of sexual assault against actor Kevin Spacey, Scotland Yard has confirmed.
Developer posts link to malicious bug that if sent to an Apple phone or computer can reportedly cause an immediate crash.
A selfie led to a Canadian women being convicted of killing her friend after police spotted the fatal weapon a in photo.