Hundreds of thousands of people have demanded compensation from their bank and building societies over sky-high bank charges, in what has been hailed as one of the biggest consumer revolts ever.

An estimated £784m has been paid out to customers in out-of-court settlements. Another 1 million people are awaiting refunds on charges and many more could have a valid claim.

The claims process has been held up since the Office of Fair Trading (OFT) launched a court case to establish the legality of overdraft charges, and the banks were allowed to put claims on hold until it is settled.

The first round of the court battle went against the banks, and unsurprisingly they have launched an appeal. Until the court case is completed the compensation process is likely to remain in limbo.

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But that shouldn't stop you from making a claim. It costs nothing, other than the cost of a stamp, and your claim will be logged in the bank's system. You can only claim for charges going back six years, so if you incurred big penalties more than four or five years ago you could be deemed "out of time" if you don't act soon.

We show you how.

STEP 1: Work out if you can make a claim

If you've paid a penalty fee after going overdrawn without permission, exceeding an agreed overdraft limit, having cheques bounced or direct debits or standard orders declined you could have a case. By law you can make a claim for charges paid in the last six years.

STEP 2: Calculate how much you were charged

This should be spelt out on your bank statements. If you haven't kept your statements, you can write to your bank to ask them to provide this information. A template letter is available at Reclaim unfair bank charges .

Under the Data Protection Act 1998 the bank must provide this information within forty days and, if you ask for a computer printout of charges, they cannot charge you more than £10.

The bank may try to charge you more for providing a copy of statements but a computer printout is acceptable evidence.

If the bank refuses to provide you with this information contact the Information Commissioner.

STEP 3: Make a complaint

Write and say you believe all the past charges were disproportionate and you want all the money back. A template letter is available at Reclaim unfair bank charges.

STEP 4: Consider what your bank offers

The only people who will receive a payout from their bank or building society between now and the end of the court case are those whose provider has already offered them a refund. If the offer is for less than you hoped, you have to decide if it is worth holding out. If the banks win the court case, you may get nothing.

STEP 5: Take action if your bank rejects your complaint

As a result of the test case against the high street banks, claims are on hold (except in genuine cases of financial hardship). However, your bank is required to register your complaint and keep you informed about what is happening with the test case.

If, when the claims process is restarted, your bank rejects your claim you should first go to the Financial Ombudsman Service (FOS). It can order companies to pay compensation for valid complaints even if the firm has previously rejected it. The FOS has suspended bank charge claims while the test case continues.

If that fails court action is your only option.

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