Can I sue an impound car lot?

OK. I used to own a 2006 honda civic and it was impounded because i parked in a tow away zone. I couldnt take the car out because of my license. Its been about 2 or 3 months now since the car got impounded. I was trying to get my financial company to take the car out for me since i was still making payments on the vehicle. The financial company called me telling me that they spoke to the impound and they said they had released the vehicle already. It was not me obviously and they said they can't release information on who the car was released to. I kept trying and they gave me the same answer when i called them. Is it legal for them to sell a financed vehicle? Can i sue them for releasing my car?

UK answer you have 14 days to get your car back or it is forfeit. You still owe the finance company and the impound will either sell or crush your car.
You can't ignore these things for a while.
You say you could not recover it because of your license.
I guess you either did not have one or it was suspended. In either case why were you driving the car?
Park in a tow away zone what do you expect? A nice person to find you and ask you to move it?
It is dubious if you can sue them and if you do you will almost certainly lose. More costs.
You waved that goodbye when you chose to leave it in the tow away zone.

You can sue them but, you have no case so you will not win.

They likely released it to the bank because the bank paid the impound fees. You can't expect them to store your vehicle indefinitely. You have to pick it up within so many days or you have abandoned it and that is what you did - you abandoned it. The time limit was likely 30 days but, the law varies. Your storage fees were well over $1,000 for three months, possibly $1500 or more and the towing cost/recovery/service call was about $250 so, you could have owed up to $2,000. Do you think that the impound lot can just store your car indefinitely, and let $2,000 turn into $10,000? They contacted the lien holder who either paid off the debt and had the car sold at auction or, depending on the value of the car, they may have released the lien and the impound lot would then sell it. It is perfectly legal and reasonable too.

You can't win. You abandoned the care. They are not obligated to keep it forever - usually after 30-60 days they can sell it, financed or not. You shouldn't have waited so long. If you didn't have a valid license, you should have gotten someone with a valid license to get the car.

The bank probably didn't get involved in it. You owe them the money either way. Not sure why the alleged paralegal (who seems to think filling out paperwork makes her a legal expert) thinks the finance company would lie about it, since they told you someone else got it.

You have no one to blame but yourself. Call the impound lot and ask them what happened to the car. You can't get it back, but you can at least know where it is.

Depends on local and state laws. If the car is held there past the legally allowed amount of time/amount accumulated on the bill, they are allowed to sell it. Check the laws dealing with this then talk to a lawyer if they screwed up

Depends on state law. You can't just leave it there forever. Eventually they sell it to recover their costs.