sounds suss to me, they tell her they're not giving it back until she provides proof its hers yet they would be able to see on her file how long the cars been registered in her name or they could ring nsw people to check that and get the files faxed. i'd assume they'd be able to look up your licence number to and check it was registered to you

if it was me i'd abuse them until they gave me a proper explanation, if unfamilla is right they cant tell her they're giving the car back when they've got no intention of doing so. only other thing is when she's got the roadworthy done the guy put the wrong vin number in, i've had major dramas because rwc wasn't filled out properly dumb ass behind the counter tried telling me my vintage motorbike was a stolen caravan