Repossession: Cam I Sue Bank for Repoeing My Car with a Clear Title Illegally

My question involves a consumer law issue in the State of: California.

Seller and me went to the DMV and he completed paperwork there and the seller completed paperwork there to get me a clean title to the vehicle which I have in my possession.

So again according to the DMV I am the registered owner with a clear title to the car.

Some months later my vehicle is repossessed by a bank saying that they have a lien on the vehicle and a different older title. I told them according to the DMV current records I am the registered owner with a clear title and sent them a copy of my title to prove it.

They said case is under investigation and refused to release my vehicle. Cops refused to help saying it is a civil matter.

Have they acted illegally by not releasing my vehicle as I am the current registered owner with the most current title?

I would think I would have the right of possession until they restore the lien and get their title restored and they are currently breaking the law.

I know I can sue the seller.

Has the finance company or towing company done anything illegal where they are worth suing also?

Any advice before I get a lawyer or take this to small claims court is appreciated.

Repossession: Cam I Sue Bank for Repoeing My Car with a Clear Title Illegally