I have a debt from 1998 & they have just contacted me now is that allowed I mean we are in 2011 now

Who has contacted you, a collection agency? The statute in Ontario is six years on an unsecured loan. It doesn't matter if it is allowed or not, the debt is passed down from the original creditor and bought for so many cents on the dollar. If you don't contact them, don't talk to them, don't activate the debt by paying anything, then it will go away. In essence, their time has run out for collecting on this debt.

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