Woolworths Store Account Jeopardizing My credit profile.

For the past two weeks I've been actively working on improving my credit score with the great help of Finwell legal services. To my shock and horror my account is labelled as "Handed over" on Trans Union as if to say its with lawyers now. Please explain to me how when I bought groceries at Nicolway Woolworths yesterday afternoon with my store card? I had presented my ID at the store as well for standard procedure and there were no issues and I went home happily with my food items.

Make it make sense please? because now my credit profile is jeopardized.