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Must I fixHole in the eaxhaust of my peugeot 206LX automatic!?

My 1999 peugeot as above had an exhaust problem. Last year I was told it had a small hole at join of mid and rear pipes. I rang the dealer as now it is noisy and I had been told there are two types. Mine is apparently a 3 piece with the catalytic converter in the middle part. The part cost at the dealer is £547 although the car is very old it only had 61K miles on the clock. My question is
1. Is it illegal to drive with the noise/hole
2. Is there a bandage or the like that could fix it?
3. Could you use a pipe without the converter?

I don't want to spend a lot of money on it. I'm old too - 77 but I do drive regularly and enjoy it.
thanks - your thoughts will be appreciated.
Loretta, July 2012
Hi Loretta,if your exhaust is very noisy then you could be pulled over by the cops,for a temporary fix then there are bandages as you say that would do that,also a leaking exhaust can be dangerous regarding fumes finding their way into the cab,why did you go to a main dealer? you could save loads if you tried an independant garage,motor factors now deal in cats and prices have dropped from years ago when they tended to be a lot dearer,also if it is a cracked pipe you have then it may be repaired with a weld.if it is rotten then I strongly advise to get the correct parts fitted but shop around for the best price,good luck

cdc, July 2012
link Click here to see other fixes for Peugeot.