Haringey Borough Council has blocked access to the top 50 payday loan firms from its IT network in a bid to protect people from excessive interest rates.

Payday loan websites – some of which charge annual interest rates of more than 4,000 per cent – will no longer be accessible from council computers in the borough’s libraries and other buildings.

The authority hopes the move will prevent residents from falling into debt.

It will continue to promote the Haringey, Islington and City Credit Union, which offers affordable loans and encourages saving.

Councillor Joe Goldberg, cabinet member for finance, said: “Payday loan firms target the most vulnerable in our society and this action makes clear that they are not welcome in Haringey.

“As the borough’s families face rising fuel and food bills, cuts to benefits and rising unemployment, we are determined to support them through fair and ethical schemes like our local credit union.

“The affordable and responsible lending the credit union offers shows there is an alternative to exploitative firms, and we will continue to fight the proliferation of them on our high streets.”

Last year, the council agreed to make £750,000 of loans available to Haringey credit union.

The deal allowed it to expand its work and could see more than 1,600 households become members.

For more information visit www.credit-union.coop or call 020 7561 1786.