Being hared -- defaulted car loan, car not returned. Are they blowing smoke?

A friend I once lived with in the past defaulted on a car loan last year and at some point the bank initiated the repossession process. The bank could not recover the vehicle and the debtor changed their phone number, etc and presumably has been garaging the vehicle elsewhere. I have been receiving haring voicemails from a skip tracer at an et recovery firm (presumably because we once lived together) trying to get information, claiming that the bank has demanded loss payoff from their insurance company on the vehicle and that once the claim is paid the insurance company will take title on the vehicle and this will somehow dramatically change this it into a matter of theft. It all sounds fishy to me. As I understand, the creditor, insurance company, or whoever owns the collateral, needs to go to civil court and get an Order of Replevin to recover the collateral. The recovery firm is trying to make it out as if this person could be charged with theft. What's going on here?