BOSTON – Progressive Direct Insurance Co. agreed last week to a $125,000 settlement with state regulators for misleading customers about how they set auto-insurance rates, The Boston Globe reported.

The company, based in Ohio, mistakenly told about 3,200 customers from Massachusetts that their credit information was used to calculate their auto-insurance rates, according to the Mass. Division of Insurance. Massachusetts regulations bar insurers from using credit information to set rates.

According to The Globe, the company said it didn’t used credit histories or scores to calculate rates in Massachusetts. Rather, it accidentally referred some customers seeking quotes to a standard explanation on its website of how it uses credit histories in other states.

The company said it removed the link last month and is contacting customers who clicked on the link, The Globe said. •