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Call Center term - the act by an agent of putting a caller on hold as punishment for being stupid or otherwise annoying. Duration of penalty hold is a function of how irritating the caller is being.
Caller: well I want you to bla bla bla because I'm important and you're just a peon and bla bla bla...

Agent (smiling): Just a moment, Ma'am, let me see what I can do for you (places call on hold)

Cube-mate: Hey, are you on break?

Agent: Naw, I've got a caller on a five-minute penalty hold.

- - -

Agent 1: Don't you hate it when they start demanding shit like they're entitled?

Agent 2: Yeah! I usually give them at least three minutes penalty hold.
by phxphun1 August 01, 2008
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