just because the finance company "forgot" to update the register doesnt mean finance isnt owing.
Worst case scenario you have the garuntee from your hpi check.
if youve got a garage, lock car in garage and cover the windows so the debt collectors cant see it. At least that way they have no legal justification to break into the garage as they cant see the car, so if they did, you already have one up on them.
Was it bought privately? Do you know when the finance originated from?
Look up the innocent purchaser defence and spout it at the debt collector if he comes back. Follow it up in writing sent by recorded delivery.
Do be aware that if they want to be hostile, they will lie to you and the debt collector will make all sorts of false claims. Eg claim he is a baliff acting on behalf of the court etc.
if he truley was a baliff with a court order, he is legally obliged to show it to you. Also not forgetting if they have taken you to court, they must legally have served papers on you as the current registered keeper. they cannot reasonably claim they didnt have an address as how did they find you now??
Whatever you do, do NOT allow them to take the car. If it means getting arrested then so be it. They may try and use force worst case but it WILL be illegal without a court order. Also if they involve the police, the police presence is allowed only to prevent the breach of the peace so if the debt collector gets a copper to threaten you with arrest if you get in the way, then immediately challenge the copper and threaten him to make a complaint too. Should then drag out the duty sgt or senior officer who should then take the "its a civil matter" line and get the copper to stop doing the debt collectors dirty work.
But thats all worst case
What should happen if its a respectable finance company who follows the law and OFT policies, is that they will investigate to clarify if you were an innocent purchaser. As an innocent purchaser, your good title comes above that of the finance house meaning they cant make a claim against you or the vehicle and they should declare formally no further interest in the vehicle.