Product: Credit card or prepaid card

On XX/XX/XXXX I applied for a XXXX rewards XXXX from XXXX XXXX upon pulling my XXXX   credit report I was approved for a XXXX limit. Fine great terrific. Now I have a XXXX credit card to go with the XXXX car I financed in XXXX with XXXX XXXX. 
Well not so fine. I received my cards around sometime in the first week of XXXX and not until the second week in XXXX did I call to activate them. All was good. Now also once I activated these cards they instantly appeared on XXXX XXXX XXXX and XXXX credit reports. All is good. Then about 2 days after I had activated the cards they have sent me I went to my online account to look up some information about the account and I find out I have no credit its closed. The account comes up as closed on all my credit reports. I had never even used the card and only activated 2 days prior.I called XXXX XXXX to try and find out what was going on and all I would get is during initial review I wasnt granted credit and I would receive a letter stating why. I stated is this how it works now you get approved they put account on your credit and then close the account. 
This process is wrong as it creates an account on your credit reports and then closes and you take a 30 point hit on your credit score. If account wasnt approved which it shouldnt have been from the beginning the worst that happens is you get an inquirery on your credit report and you might loose 2 points on your score. To have an account open never used and then closed XXXX points on score or 2 points which would you take. 
So then I get a letter from XXXX  dated XXXX XXXX stating Account was closed because number of recent inquiries and number or inquiries was obtained from XXXX. The problem is XXXX   doesnt even show XXXX XXXX XXXX as pulling a credit report and next all this should have been done from the beginning. This account shouldnt be listed on credit report. 
Im not going to argue as XXXX has the right do do as they please but when they intentionally do things to hurt my credit score im going to get upset. Prior to XX/XX/XXXX I have only 3 credit inquiries in which one was a group of inquiries for a auto loan I co signed for my daughter prior to XXXX I have 3 from early XXXX for a possible home purchase. So is XXXX   saying 3 inquiries in which one was for an auto loan prior to the date I applied for their XXXX XXXX on XX/XX/XXXX is too many inquiries? It states same on XXXX which is what they pulled on XX/XX/XXXX. 
I applied for card because I heard good things about but now after this I have my thoughts about XXXX. I never in my life applied for a card was told I was approved and then a couple days after I activate it it is closed. 
Im starting to think I am being discriminated against for some reason. I applied for a XXXX   meijer card once in which I got back they couldnt approve because there was a security lock on my credit report and I would have to release it but they didnt name the reporting agency in letter nor when I called them. I didnt have any security locks and they pulled my report from XXXX   and stated they couldnt pull my reports and I have this documented as I can review my reports any time any where and I get a notice when someone pulls my reports via text and email. 
What was done was wrong while I would have liked to have the card as my main card what they did was not only wrong but unethical. Open an account grant credit then 2 days after call in to activate close account its never been used and report an open account on credit reports then closed account. There was never any access to the account. So because of my credit score drops 30 plus points for showing a closed account. Id much rather have them deny me when they pull credit upon application and loose only 2 points on my credit score than 30 plus for showing a recent closed account on credit reports for an account that shouldnt even be on credit reports as was NEVER used nor had access to.