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Read the following response to FFF88's post. Murray3331 knows what he's talking about! Fixed mine after living with it for over six months. Make sure you ask for the cutout metal shims that are part of a service campaign. They're designed to apply unequal pressure to the pads during braking. The embossed arrow on the shims are supposed to point up. If there's any wear on the pads you might need to replace them also.
"by Murray3331 on Tue Aug 13 00:09 UTC 2002
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I think I know what is causing your problem, I have had it on my 850 as well. Volvo makes a set of shims for the rear brakes. On some models you must install this shim to adjust the angle of the pad. I believe there are two types - a teflon and ?? Anyway, I think this will correct your problem. It sounds identical to what I had... and BTW the dealer did the rear brakes, rotors etc, and didn't re and re the original shims I had... great service eh?
Shims are around $15 and 1/2 hour labour"
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