Comp Bank withdrew $600 from Acct., a check I wrote Nov. 2006 and we are now in June 2008, is that right?

In Nov. 2006 I bought Rims for $1,100 I gave 500 cash and had agree to pay $200 for three months... I had to give a check of $600 as collateral. The following month I gave a full cash payment of $600 and they were supposed to shred check. It is now almost two years later and the vendor has cashed the check. The vendor states that my account doesn't show payment of my $600 cash and are demanding a receipt, but since it has been 2 years I threw it away after my account was closed. I then questioned the bank and they are stating that since the check was cashed by another bank they still had to withdraw my account, otherwise the check would have been voide after 180 days.. so they said its between me and vendor. Does that sound right? Cause I still feel that they have some type of responsibility... any suggestions as to what I should do?