They are full chit.
The loan company would send notice to the customer during the time she “didn’t have coverage”.
She may have changed insurance several times during the course of the loan and there would be nitice filed at dmv and to tbe loan provider.
Tbey would also send notice of her final bill, make phone calls , etc.
Story ain’t right...
The notice essentially said "Hey we bought your loan and you haven't told us who your insurance company is...so if you don't respond in 72 hours, we'll buy it for you (at quadruple the normal rate)." I have no doubt this company did something similar.
Exact same thing happened to me. By changing insurance bank only received cancellation notice. New insurance failed to send them notice. Ironically my car was in shop being repaired from accident when they tried to repossess. Cost me an extra thousand to get it back since they had to keep looking for it. Then the repo people stole everything in my vehicle including money. Yeah it happens. Btw I had 3 payments left on it.