Gouge on polymer notes: what caused this?

I just got two sequential £5 (King Charles) notes from the bank. They weren't from an uncirculated bundle, they were from a made up bundle of 100 notes. 

They were both in perfect condition besides this nasty gouge which was in the same position on both notes:

What caused this? Can a counting machine do it?

It would be hard to tell if we do not know the history of these two notes. It looks like a hard object had been pressed on top of the notes tight. Counting machines do sometimes damage them but usually it only leaves scratch lines on it. It can be very fine and in many cases you find them deeply scratched on them. To me, I do not believe it was the counting machine. I do have damaged polymer notes, but not like these two you have. In your case, I could be wrong.
 

It is very unfortunate that once it has been damaged, you cannot have it repaired. However, I have tried using a hair dryer (very high) for 5-10 seconds to see if I can improve the condition. I do not believe this will help much with your notes. To me, your two notes are considered ''damaged''. Whatever you do, DO NOT iron it with a hot iron!!🤣

It is a shame because they are ruined only because of that one thing. But it is quite bad damage. 

I'll take them back next week. (I am playing “bank lottery” now, I've had some success getting UNC notes but so far not any £10 and not any £5, all were damaged in some way). I did get some consecutive £50s that were UNC so it hasn't been a complete wasted trip.

This is what I have done here when brand new notes were released. I requested a bundle and asked the teller not to count them (by hand or machine). I also told them that I will take the risk in case there were any notes missing in the bundle (for the $5 and $10 notes). Here, either they have it counted with machines or they put them on an electronic scale in front of you to confirm the total value.

I don't know about other Canadian banknote collectors, but I have received my fair share of scratched, nicked or gouged polymer notes. I got a GJA Macklem Poloz $100 change-over (P-110c) with scratches that nobody wanted to trade so “back into the wild” it went.  I don't collect $100 but that was a tough variety to come across (& the only reason I had it was b/c the prefix was new & figured I would put it aside for someone else). 

I also searched thousands (bricks) of 2017 “150 years of Confederation” TENS and probably came across 15-20% notes with scratched see-through holographic strips. My guess is that it happens in production when staff treat the notes a bit more rougher (or careless since they're hardy plastic) and some steel instruments has scratched the sheets on some step.  

Anyway, just to be clear, the notes can receive an UNC grade but they won't get “EPQ,” PPQ or “Original.”  I failed to see a nick on one of my 1017 TENS I submitted and the certififier revealed that the polymer was nicked (& I had missed it). The note was graded UNC 64 but no “Original” by BCS.

Thanks!

For me then, as these are new notes, it seems not worth even keeping them. I will be better off trying again for undamaged ones.

odd job

Thanks!

For me then, as these are new notes, it seems not worth even keeping them. I will be better off trying again for undamaged ones.

Yup: keep looking (there's good ones out there).

I got twelve £50 notes from the bank today. Only one was good, the other eleven will go back.

There was one note that had gouges, this time in three places:

On the last one, the pink undersurface of the note shines through and the gouges appear red.

This must be some kind of machine damage, surely?

Counting machine. These are damaged notes.