Calculation and notification of the penalty: Penalty rates
The penalty is applied on a daily rate basis and the penalty rate increases with each further default.
First default attracts a penalty of £5 per day.
Second default attracts a penalty of £10 per day.
Third and subsequent defaults attract a penalty of £15 per day.
The penalty can be applied for a maximum of 100 days.
There is a minimum penalty of £50.