Product: Credit card or prepaid card

I visited a XXXX retail store on XX/XX/18 and was ask to apply for a credit card. I applied for the credit card in house using my social and was instantly approved for {$500.00}. I received a shopping pass and was told that I would receive my permanent card in the mail. I received my welcome packet in the mail along with my credit card. I had never used the card except for once in the store for the in-store purchase I made the day of the transaction. That purchase was made for {$22.00} and some odd cents. On XX/XX/18 I visited the store activated my card and prepared to make a {$66.00} purchase because I also had a sticker on the card that said I could earn {$20.00} possibly. When I presented my card for payment I got a message of invalid account. Myself and the store associate called to hear that the account was activated. We finally got a person on the line who told me that my account had been closed. I called when I left the store to get more details and was told by a Supervisor that I was in fact extended credit on XX/XX/18 but on XX/XX/18 XXXX XXXX saw that I had too many inquires so they decided to close my account. I have had inquiries because I closed on my home several months ago and after XX/XX/18 I applied for 2 cards that were not retail cards to move one of my credit cards for a balance transfer, but all my credit accounts are in good standing and I have had a pay increase which lowered my debt to income by a few points since applying for this card. My concern is that I have worked very hard on my credit and have been monitoring it for a long time and I know that a closed account can damage my credit worthiness to other consumers. This may be the reason why I now have to prove to one of the cards that I applied for the balance transfer that I am who I say I am. Because XXXX/XXXX showed on my report as an open account back in XX/XX/XXXX because I have the update from my XXXX account and now it just shows as an inquiry with no account attached. These practices should not be allowed. I approved the look into my credit on XX/XX/18, but I did not authorize nor was I aware that they looked at my credit on XX/XX/18 and now a month later I have to pay {$22.00} for a card that I have in my possession that was closed on me by no wrong doings on part. I feel that this practice is damaging to consumers. If I was extended instant credit in the store then at that time I was worthy and this went on so long that I got a card and a statement that still did not tell me that my account was closed. This institution should be stopped. I can't believe this because I have an account with this institution through XXXX XXXX that I have held for years and has been paid off a couple of times and in good standing. I would like an in-depth look at the damage this may have caused me. I can tell you that my score has been affected 30 points which sounded crazy to me when I got the alert but now it all makes sense because it looks like I applied for 3 cards now that I did not get when in fact that is not the truth. I can also tell you that my score was only affected a few points when I opened this account because I was extended credit and I immediately got the alert from XXXX  with scoring. I would like to appeal to you for assistance in this matter.