RBS Citizens Consumer Loan Complaint

RBS Citizens Consumer loan department,

Vehicle loan Managing the loan or lease New York

Citizens One reversed a payment from my loan stating that a check they received from me has been stopped by -. The photo copy of the check they sent me had a different name and was payable to - -. It was a check issued by - to - on behalf of someone else. After further investigation, Citizens One claimed that the check that was sent on my behalf was cashed by - and an error was made by -. I notified - and they replied that a check on my behalf was paid to - - - - on - -, 2015. I was also informed by - that a check can not be cashed by someone who is not the payee. I am wondering how Citizens One knew that it was - - who cashed the check and how it was cashed when my check was payable to Citizens One. Citizens One does not want to give me a credit for the $250.00 check that I paid them and told me to go to - since they claimed that it was - error and not theirs.