Some dealers for some reason believe to think that they can get away with trying to sell you a catalytic converter when you don't need it. In general, the cat should last you the life of the car, unless your car has been running very poorly over that time. CEL usually comes on for: O2 sensors (2 of them), Mass Air Flow sensors, a bad vacuum leak, a bad gas cap.
There are some non-dealer Volvo repair shops that you should try out to get second opinions. In the Seattle, WA area, Daisywagon in the University District is the place I take both my 1986 240GL wagon, and 1999 XC70. They are great, fix only what needs to be fixed.
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