Stolen car bounty hunters?

Family member had their car stolen about a month ago. Was a nice 45-50k dollar car. Both the finance company and insurance sent paperwork to call it a loss and it was finalized last week.

Fast forward to today, the finance company called to say the car has been found in good condition somewhere off Bissonett and that the insurance company is now refusing to pay them for the car, therefore will go on my family member’s record as a repo.

Weirdest part is when asked who found it, the finance company literally said “a guy named Joe, and he is asking for 1400 dollars for information to get the car returned”. We were given Joe’s number and reached out and he said he is a professional that was hired to find the car and has been doing this for 30 years and needs his 1400. My family member is an older, vulnerable person so I worry about this situation. Has anyone heard of these “stolen car bounty hunters” and with everything being legally signed over is there any possibility the finance company can report as a repo? This is a strange situation.

And just to further clear up, a new car has already been purchased therefore we do not want the car back.