Non transparency in the insurance process and *********** staff

I had an account with Edgars which was settled in 2017 by the insurance I had on the account. The account was settled due to me being retrenched from work. I was advised by the call centre agent whom I called from the Westgate Mall branch to immediately stop my Debit Order as the insurance will settle the account. The account was subsequently settled and to my knowledge there was no balance on the account.Now two years later as I tried to apply for a cell phone contract I am told that my credit score is low due to an outstanding amount on my Edgars account. I got my credit report and it shows that an additional amount was added on my account after the account had been settled. I was not contacted by Edgars in these two years to inform me about this and had to find out this way (yet I receive promotional emails constantly). After submitting my complaint I received the below response from their customer care:

"In response to your email received, please note that our records indicate that on the 16th of October 2017 a total of R6340.21 was paid into the account to settle the outstanding balance. This was due to you making a claim on the Account Protection Plan you had taken out to settle your account balance in the event of that you are retrenched, deceased or permanently disabled.

Our records further indicate that we have not received a request to close the account after the claim was successfully processed. If this is not the case, please forward us **** that you indeed sent a request to close the account from 16th October 2017 to 6th of October 2019. Please also advise if you have requested for the financial services on the account to be cancelled in the same period as this is where your balance comes from as the Cellphone Insurance., Service Fee and Edgars Club were charged..."

First of all when I submitted the claim I was informed to not make any payments and after the insurance have settled the account the account will be closed. The person in the branch who assisted me informed me that the account will be closed, I even asked her if I should want to open another account once I am on my feet, what I should do and she informed me that I have to contact the branch and they will open a NEW account for me.

Secondly to my knowledge if the account was settled by the insurance for a retrenchment claim should the finance charges not be stopped as the person is retrenched therefor unemployed with no income to pay for finance charges on an account that is not used?

Thirdly Edgars did not attempt to contact me with regards to any outstanding balance or charges on the account.

Lastly why should I be penalized for the incompetence of the Edgars staff?