Rejected set of clothes Oscar collected (3,2,2)
I believe the answer is:
out of it
'rejected' is the definition.
(both can mean excluded)
'set of clothes oscar collected' is the wordplay.
'set of clothes' becomes 'outfit' (I've seen this before).
'oscar' becomes 'O' (phonetic alphabet: alpha, bravo, charlie etc.).
'collected' is an insertion indicator.
'outfit' enclosing 'o' is 'OUT OF IT'.
(Other definitions for out of it that I've seen before include "Excluded from participation" , "Without a chance" , "Eliminated" , "Drunk < , unaware what is happening" , "unaware of what's going on" .)