Loan account handed over-paid up but still shows as owing

I had a loan with Capitec that was handed over for collection due to difficult situation, this was than paid up and had received paid up letter which I was told that I need to go to the branch for them to update since this has been also cleared in credit bureaus, The consultant in Smith street branch in Durban waiting in the door, instead of explaining that I am now black listed by Capitec regardless of the paid up letter,they told me, there was nothing to update i tried explaining that this still shows under my profile that I still have a loan that was handed over, should this be not cleared, they said No need for the paid up letter,...IS this how clients are being treated regardless of having this account for almost 10 years, does this mean I am now being blacklisted, when will your system be updated?????