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Need some advice on how to treat an overdraft that the bank are calling in.

Its not a huge one but more than enough to care about.
Its about £500 and the bank have told me they are not renewing it. I have not paid into the account for a while and they have been adding there monthly charges and interest. In fairness I can afford to repay very little and they know this, i'd say I can afford nothing but that is not an option.
I have no debts or other accounts with them other than a credit card which i'm repaying a dca at £5 a month. Would I be best to offer them £5 a month and see if they give to a dca?
The other thing is, what is the deal with charges as they are bound to so no and they have these hideous daily charges. I'm happy to have a go at repaying the overdraft and whatever so far but if they think i'm paying £85 a month in daily fees they can see me in court for it.

Its Lloyds btw so any advice would be much appreciated. :)
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