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You might find it enlightening to read the description of the 2005 Subaru Outback catalytic converter problem, the 8 year, 80,000 mile warranty on that part; and the $665 total cost of parts and labor for replacing that item, on the site referenced below.

Here in California, we have a state agency called the Bureau of Automotive Repair; which is very responsive to reports about shops which try such outrageous scams. It may well be that your state has such an agency, too. There are also Federal Consumer Protection agencies, and your state or county District Attorney; who would love to hear about this shop.

Source: http://autos.msn.com/research/vip/Reliab...

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Personally I would take it somewhere else for a second opinion. An independent shop can diagnose and repair for probably less than what you were quoted. It doesn't sound like cats to me if your cruise will not work because of that code, unless there is a safety feature in your car that disables the cruise whenever that light is on.

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