Rights in a repossession reclaim?

I am stationed overseas and the person (husband) who I let care for my car parked my car in a no parking zone and it got towed. My husband tried to retrieve the car from the towing company but he couldn't because my name is only on the title. My hubby told me what happened and i called the financing company. I told the company that I am stationed overseas. I was told by the company that they had already picked up the car and that they would put it in storage for me for $5 a day until I was able to get the car. A couple of weeks later, I traveled back to the states and retrieved my car and payed all of the fees. I never got a notice in the mail until I came back overseas which was about a month later. I checked my credit a couple of days ago and the car company put a repossession on there stating stating that my payments were key derogatory. When I purchased the car 2 years ago, I had set up a monetary allotment and I have never been late on any of payments as of yet. I called the financing company and I was told that since they had to come get the car, it was a repossession. They also put the title back in their name so I couldn't renew my tags. Now they want a power of attorney so that they can put the title back in my name. To me, this sounds fishy. Can they put a repossession on your credit report even though you have never been late on any of your payments? I feel like they took advantage of the situation. Please help!