The seven letters and ignore routine is suggested for private car parks. Councils have power to enforce with bailiffs. They WILL use that power and you'll end up paying a lot more than is suggested now.
The phrase about the 'Penalty Charge exceeded the amount applicable in the circs' is concerened with cases where Council tries to charge more than the traffic order permits.
I know it's frustrating and perhaps the Council should have exercised some discretion but the rules were broken. If you still have time to appeal to the Traffic Penalty Tribunal its just remotely possible that they might tell the Council ot should have exercised discretion but that's a long shot.
My advice is pay up and put it behind you.
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