Q: Oil Filter Housing failure?

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Wife's car was due for oil change and just before taking it to Volvo the oil light came on. Checked oil and it was a bit low. Took for service and told oil mixing with coolant. Told it was oil filter housing failure although to me it sounds more like a head gasket. Told needed to change out oil filter housing, thermostat, all hoses (radiator and engine oil) etc.

No noticeable change in performance and had regular warranty service (oil chng, etc) 5 months ago and no issues reported at that time.

The car has less than 16k miles on it and this just doesn't seem right. And to top it off they want to say this doesn't fall under warranty coverage.

HELP.

My car has 15650 miles.
My car has an automatic transmission.

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