DATA%20BLOCKED due to BadFormChars

Document ID : KB000100560
Last Modified Date : 08/06/2018
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We are getting an error with DATA%20BLOCKED while trying to access a protected resource:

[10/04/2017][23:37:54][10789][21][CSmHttpPlugin.cpp:657][CSmHttpPlugin::ProcessResource][0000000000000000000000000abbb50f-2a25-59d562c2-0015-06cc5a3f][xx.yy.zz.aa][][wa_abc_portal_xyz][][][Resolved URL: '/portal/login/'

We are using custom login.fcc which is encoding the target.

How can we resolve this?
WebAgent : R12.52 SP1 CR06
Issue occurs when the fcc is URLEncoding the target, and the encoded characters are set in the ACO parameter "BadFormsChars"
If you don't want the bad form char characters to apply, please set the parameter to an empty value. 

BadFormsChars="" - No characters are encoded. 

Solution Document: QO97363 
By default they are all set (i.e. BadFormsChars="<,>,&,"").