I have just checked my credit report online and the notes on it say I defaulted on a loan. The last update from the loan company was 3 years ago and it says that they were unable to reach me.

I am not in a position to pay back the loan and although I still have an address in the UK where I took out the loan (although not at my own property) I am now permanently living abroad. I only use the UK address to receive letters relating to UK affairs.

I have 2 questions regarding this:
1) Now that I have submitted my details to Experian to find out what my credit report says is there any way they can pass on my personal details to the loan company I still owe money to without my permission? (NB.. I immediately cancelled my account with Experian after finding out the information I wanted to know).
2) What will happen to the loan I defaulted on? Bearing in mind nothing has been paid since 2004 and the last update they made to my account was in May 2005. Will this get written off and what will happen if I decide I want to get credit in the future?

What's the state you are living at? And who is the company? All depends on the statute of limitations and that is different in every state. Experian will put in your credit report for every creditor to see it any personal info you gave them, specially address, name and phone number, They are the worst you almost have to sue them in court to get that data deleted.

My guess is that is that Experian does not owe you any confidentiality and can pass along (sell) whatever information it may have about you, but I could be wrong. The defaulted loan should specify what the lenders rights and remedies are: if there is collateral, repossess it; sue you when they locate you. The situation may be such that while you are out of the country, the statute of limitations is not running.

Sorry I didn't read that "UK where I took out the loan " I don't know how it works in UK but I don't think that US Experian can list UK's accounts, also I don't think that an UK company can sue you over a debt unless you live in UK. There was no long ago somebody around here from the UK quite knowleage in UK consumer laws. Maybe you can try to find some real answer in a UK consumer's forum