I went into the red months ago HSBC now offering me a overdraft facility? Pleae help

martyn1

Hi all, some time ago I had a transaction occur on my bank account that I didnt authorise, I've now battled this and now getting half of the money back. As I havent used the account in so long, I've been accumulating charges ever since. I only had the £10 overdraft available on my HSBC account, but since then interest and charges have been going up ever since, and now I owe nearly £500. I lost my job months ago, and its going to be some time before I'm back in one. Today HSBC sent me a letter saying
"I notice from our records that your account has been continually overdrawn for approximately three months. You will realise that no formal limit has been agreed between us.

For your information the rate of intererst being charged on the overdraft is our Bank Account Rate, which is currently 18.29% per annum, an Effective Annual Rate of 19.9%

I bring this to your attention as a matter of courtesy, but shall be pleased to discuss this matter with you if you would like to formalise the position. Every informal overdraft we agree to may cost you an Arrangement fee. If you anticipate that you may want to make frequent informal overdraft requests, it may be cheaper for you to apply in advance for a formal overdraft. A formal overdraft facility can last for up to 12 months and carries a one-off fee of £25."


Now the thing is I've been over drawn since November last year, and im nearly £500 in the red because of this non authorised transaction, and charges every month. I have no job yet they are asking me this? Why? What would be my best course of action to take? Would they allow a formal overdraft, lets just say £600 so I wont accumulate any more charges? I cant understand why they are offering me this.
Any help would me much appreciated.