I have debt with a collection agency in Ontario, but have been living in the UK now for years and have just recently defaulted. Can they still take legal action if I am no longer a resident of Canada? Also, is there any benefit to settling a debt through a third party agency if you are close to SOL... would your credit rating benefit?

I am a bit confused. You have a debt with a collection agency but just recently defaulted? How did the debt get into the hands of the collection agency in the first place?