To set one up, please go to Communications ➔ Notifications ➔ Customer Membership: Penalty System ➔ Add Notification.
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Here you can select which Penalties you're setting up a notification for, and how often you would like this email to be triggered.

Once you click on Next, you can set up the template of the email which will be sent to customers once they meet the criteria you set up in the previous step.

You can then find all notifications you have created for your Penalties by going to: Communications ➔ Notifications ➔ Customer Membership: Penalty System
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