Denting my credit status

I made an application of R700 which was not paid to me after 3 days due to technical error on their sode & so I cancelled the loan.Cancellation of the loan was confirmed as I already managed to get the money I needed then. On my payday they deducted the instalment of R896 & i was promised a refund.Two weeks passed without the refund & I eventualy reversed the funds with my bank.

Now i receive a statement saying i am in arrears for the money i never received even though cancellation was confirmed.