What to Do When a Hired Contractor Takes Your Money!

While most contractors are honest and do a good job, there are some who are con men. These “contractors” will promise you anything, as long as they get a check before doing any work. They prey on your desire to save money and offer to complete a project for far less than an honest contractor would charge.

A Disappearing Act

Once your check clears the bank, these con artists disappear. They’ll change the name of their business and continue to sell the same scam again and again. And if you call the Better Business Bureau (BBB) to check their reputation, you’ll probably be told that there are no complaints on file against them – they haven’t been in business under their new name long enough for anyone to complain.

When the Work Doesn’t Get Done

When a contractor has breached his contract with you and shows no sign of correcting the situation, you can hire another contractor. If the cost is higher than your first contract, you can seek reimbursement from the original contractor for the extra costs. Unfortunately, collecting money from a con artist, even with a court judgment, is often difficult. Hire a collection agency or a law firm that specializes in collections. They know how to locate resources and assets in ways the average citizen doesn’t; they also work on a contingency basis, keeping a percentage of what ever they collect.

If the contractor is licensed, you may be able to get some money from the state. Licensed contractors are often required to pay into a bond fund that reimburses consumers when a job isn’t completed. Ask the state department of licenses if a fund is available and how to apply for a claim.

You should also tell the BBB and the state attorney general’s office of consumer protection about your problem. While the BBB has no enforcement powers, it gathers information on contractors who consistently fail to complete work. The consumer protection office can also bring a civil suit on behalf of people who have been swindled and recommend filing criminal charges, especially when the victims are elderly homeowners. In such cases, contractors have actually been fined and jailed.

What to Do Next Time

When you hire a contractor…

Ask for a written contract that provides for payments tied to the completion of each work stage.

Never give the contractor a large advance payment.

Don’t schedule payments on calendar dates instead of on completion of parts of the work. You may have to pay for the whole project before it’s finished.