Payday lending sites have been blocked from all the council's public computers in an effort to protect people from sky-high interest rates.
More than 170 sites, including Wonga.com and 247cashline.com, have been barred from all council PCs including those in public spaces like libraries in a bid to protect people from "irresponsible" loans with exorbitant interest rates.
Councillor Ruth Dombey, leader of Sutton Council, said: "Payday lenders prey on people who are at their most vulnerable and in need of quick financial assistance.
"Sometimes people don’t realise the trouble taking out one of these irresponsible loans can do for them in the long run. A small initial loan can lead to thousands of pounds of debt and an irreversible downward spiral.
"This is a small yet significant step towards protecting local people from these companies. I’d urge anyone who needs advice to speak to their bank or the local credit union."
Payday lending companies charge high interest rates on short term loans. Wonga charges an annual percentage rate (APR) of 5853 per cent but only offers loans for up to 31 days meaning a loan of £400 over 31 days would end up costing the borrower £527.
The council wants people who are thinking about taking out a payday loan to turn to the CMS Credit Union, which is backed by Sutton, Croydon and Merton councils.
Credit unions are savings and loans co-operative businesses that promote saving rather than borrowing.
Anyone who saves with a credit union becomes a member, members' savings are pooled to form a fund that can be borrowed from in times of need.
To find out more, visit the council's website.
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