In arrears with a credit card which I don't have

I closed my woolworths credit card a while back and now wanted to reapply which I did via the app. When I called 2 days later to find out the status, I was told no application was received, the 'pending application' will be removed and I will have to reapply. This I did only to be declined. Imagine my horror when I call in to find out why I am told it's because my account is OUTSTANDING. 7 MINUTES of holding only for my call to be dropped!!! This is NOT acceptable and not the customer service I expect from a business such as woolworths. Totally unprofessional.