Lloyds Banking Group is to review the transparency of its charges after it was revealed that it has been charging small business customers hidden fees on forex deals as they were deemed to be “less sophisticated” than bigger organisations.
A weekend report revealed that bank guidance to its forex traders adivsed them to charge SMEs a discretionary “added value” charge of up to 1.5 per cent on each trade.
One Lloyds insider said it was “common practice” to charge lower margins on bigger organisations that “buy big and buy often”.
A spokesman said: “Our pricing is dictated by various factors – including to reflect the costs and risks associated with a transaction.
“The purpose of our pricing framework document is to ensure fair and transparent pricing to all our clients, large and small. However, we will review it and look to ensure that what we share with customers in terms of prices, fees and recovery of costs remains consistent with that purpose.”