When a user is terminated from the system, the Active Status under the user details says Active instead of Terminated. In addition, there is a new attribute called Availability Status in V7.0.1, which also says the user is Available.
This also happens if a user is deleted from the system.
This problem has been reported in ACM-69893.
Upgrading to version 7.0.1 Patch 03 or later will resolve this issue.