Possible Extortion on my BANK's part

What is the name of your state? GA
Let me start out with 2 stories. About 2 years ago, I had a bank account at my local small town bank. I had owned this account for about 1 year before that. I needed a new car since my old one messed up. So A friend sold me his car for $1000.00. I figured since I was young and needed to establish credit, I would take out a loan with my bank. My mother co-signed and I was driving again, I paid ALL the payments on time.

Now for the second story. Durning the time I was getting the loan, I cancelled my AOL Broadband service. They offered me 2 more months for free to reconsider. I accepted it. THEN They chaged me for those months anyway, since i had my debit card on file with them, they could take whatever they wanted. SOO, I called them, got them to retract those payments and told them to cancel my service FOREVER. And they did. Well, I didn't have a balance in my bank account AT ALL because I was back in school and did'nt have my part time job like I usually do in the summer. The bank account just sat there. Turns out aol charged me 3 more times and I didnt know they were doing it! So I got a call from the bank, and I went up there to talk to a guy that I knew from church about it. I explained to him what happend, and he reversed the charges and all the overdraft fees. So All is well.

Here's the problem. The guy that I knew, quit working at the bank about a year ago. When I finished PAYING the last payment on the car, my parents checked the mail everyday to see if I got the title. Well, they didnt. My DAD called them, and they told him that I had a balance that I needed to take care of. He told me this, and I was furious. My dad went up there again to get more info, and they told him what was on my account and how much etc, etc. THEN they told him that they would not release the title unless I paid the balance. For some reason the balanace was $458.00. They promised a list of what the charges where and they never sent them. After that, he went back.. WILLING to pay my debt, and the lady said that she could NOT discuss anything that has to do with my account. What gets me, is that she ALREADY told him everything. A few days later we get a letter in the mail from the bank addressed to my mother, telling her that if I don't pay for the AOL charges, I can't have my car title. A few days after that, I get a collection letter from atlanta demanding the 400 bucks.

Here is what don't understand.
Why would they wait almost 2 years to tell me about the balance that was supposedly taken care of already?

Why would they hold my car title randsom, even though the name on it, is my MOM's. In reality, the bank account and the loan are from two different people, MY account, and my mom's loan for MY car.

Is it legal for them to disclise my PERSONAL bank and debt information with my father???

I don't want them to mess up my credit, sears did that for me when I was 18 and I just got it back to normal. I've already looked at my credit report, and there IS NO mention of the loan whatsoever.

Do I have any legal ground to stand on, or should I just suck it up and hand them $480.00.

I figured it up, and if I remove the bank fees, I only owe about 125.00 from AOL.

What should I do? Who should I contact?

Thank you VERY much ahead of time.