It can happen. It is perfectly legal. While it may be an inconvenience, consider the inconveniece the lender has experienced because the contract they had with the car has been broken, and the loan has gone into default.
In reality, the recovery agents may take possession of the vehicle anywhere they can secure it and maintain the peace. With that in mind, they will most likely take it any time anywhere they can do so without having to engage in a discussion with anyone else.
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