Depends on your contract. But yes they can just take the car back.
I have that on my bank account for Verizon Wireless bill payments
"LN PYMNT" on a bank statement typically stands for "Loan Payment." It indicates a transaction where a payment has been made towards a loan, such as a personal loan, mortgage, or auto loan. If you see this entry, it means that a specified amount was deducted from your account to fulfill your loan repayment obligation. If you have further questions about the transaction, it's best to contact your bank for more details.
You can try to set a court hearing to try to get it reduced.