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What to Do If a Contractor Took Your Money

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Last updated: May 21, 2026

The first day: stop, document, and do not pay more

Your goal is to protect your home, preserve proof, and use the right complaint or payment path before deadlines pass.

  1. Stop paying. Do not send another deposit, cash payment, wire transfer, app payment, gift card, or “materials” payment until you get advice.
  2. Put all contact in writing. Text or email is better than a phone call because it leaves a record.
  3. Take photos and video today. Include wide shots, close-ups, unsafe areas, materials left behind, and any unfinished work.
  4. Save proof of payment. Keep card statements, canceled checks, money transfer receipts, app screenshots, invoices, and bank records.
  5. Check the license and permit status. Contractor rules are local and state based. Use your state licensing board, city building department, or county permit office.
  6. Contact the payment company fast. Credit card, debit card, bank wire, payment app, and check options have different deadlines.
  7. Report serious fraud. If the contractor disappeared, used a fake name, threatened you, forged papers, or targeted an older adult or person with a disability, report it quickly.

Do not make the problem harder

When a repair is urgent, it is easy to do something that hurts your case later. Unless a lawyer or official agency tells you otherwise:

  • Do not threaten violence, show up at the contractor’s home, or post private information.
  • Do not sign a new contract, settlement, loan, or “final payment” paper without reading it.
  • Do not let the same contractor tear out more work unless the plan is safe and documented.
  • Do not pay cash to “restart” the job or hand over an insurance check without talking to your insurer.

The FTC home improvement guidance warns that scammers may do poor work, overcharge, damage your home, or take money without doing the work. It also warns against full upfront payment.

If the contractor left your home unsafe

Safety comes before a refund fight. Open wiring, gas smell, sewage, roof openings, collapse risk, no heat in dangerous weather, or blocked exits are urgent housing problems.

  • Call 911 if there is fire, gas, carbon monoxide, electrical shock, violence, or an immediate danger.
  • Call your utility if you smell gas, see downed wires, or think a utility line was damaged.
  • Call your local building department if work may be unsafe, unpermitted, or structurally risky.
  • Call your insurer if the problem is tied to a covered loss, storm damage, water damage, or vandalism.
  • Ask 211 for local emergency repair, shelter, weatherization, senior, disability, or crisis help. You can call 211 or use local 211 help.

If you need emergency work, ask the new contractor for a written emergency estimate before work begins. Ask for only emergency work, not a full remodel. Keep every receipt.

Try to stop or reverse the payment

Your options depend on how you paid. Act fast because banks, card issuers, apps, and transfer companies have time limits. Even when recovery is unlikely, ask about reversal or dispute options.

How you paid What to do now Important limits
Credit card Call the card company and ask about a dispute or chargeback. Follow up in writing. The CFPB says a written billing error notice generally must be sent within 60 calendar days after the charge appeared on your statement. See CFPB card disputes.
Credit card, and you still owe part of the bill Ask whether you can withhold the unpaid amount because the service was not delivered as agreed. The CFPB lists special rules, including good-faith effort to resolve, purchase over $50, and purchase in your home state or within 100 miles, among other limits. See credit card refunds.
Debit card or bank transfer Call the bank and report the problem. Ask whether the transaction can be reversed or investigated. Rules differ by transaction type. Ask for the fraud or disputes department.
Check Ask the bank whether a stop payment is still possible. If the check cleared, ask for a copy of the canceled check. A stop payment may not work after the check clears, but the canceled check can prove who cashed it.
Payment app Report the transaction in the app and to the linked bank or card. Some app payments are hard to reverse. Screenshots still help your complaint.
Wire transfer, cash, gift card, or crypto Report it right away to the company used to send the money and to law enforcement if fraud is suspected. The FTC scam recovery page says recovery may be hard, but you should still ask the company used to send the money if it can be reversed.

Call script: bank or credit card company

“I paid a home repair contractor, and the work was not completed as agreed. I need to dispute the charge or ask whether the payment can be reversed. The amount was [amount] on [date]. I have the contract, messages, photos, and proof that the work was abandoned or defective. What is the deadline, and where do I send my written dispute?”

If the contractor charged you for work that was never delivered, the FTC has separate advice on being billed for things you never got. That page explains that some card issuers allow phone or online disputes, but a written letter helps protect your legal rights. Read FTC billing disputes.

Build a simple proof file

A good proof file helps with bank disputes, complaints, insurance, police reports, mediation, small claims court, legal aid, and recovery fund requests. Create one folder with these items:

  • Contract, estimate, invoice, change orders, warranty papers, and payment proof
  • Photos and videos before work, during work, after abandonment, and after any damage
  • Texts, emails, voicemails, letters, social media messages, and call logs
  • License number, business card, ads, website screenshots, and online listings
  • Permit records, inspection results, insurance papers, and any assignment of benefits form
  • Names of subcontractors, workers, suppliers, or witnesses
  • A one-page timeline with dates, payments, promises, missed workdays, and repair problems

Keep the tone factual. Instead of writing “scammer lied again,” write “Contractor promised by text on March 3 to return on March 5. No one came. No response to March 6 and March 8 messages.”

Send a short written demand before you escalate

Many agencies and courts want to see that you tried to resolve the issue. A short demand letter sets a deadline and creates a record. Include:

  • Your name and address
  • The contractor’s business name and address
  • The contract date and amount paid
  • A short list of what was not done or was done badly
  • What you want: refund, completion, repair, cancellation, documents, lien waivers, or permit correction
  • A clear deadline, such as 10 business days
  • A note that you will file complaints if the issue is not resolved

Short demand message

“I paid you [amount] on [date] for [repair]. The work is not complete and the following problems remain: [list]. Please respond in writing by [date] with either a refund plan or a date to complete the work with proper permits and inspections. If I do not receive a written response, I will file complaints with the proper licensing, consumer protection, and fraud reporting offices.”

Where to report a contractor who took your money

There is no single national contractor complaint office for every home repair. You may need to report the same facts to more than one place. That is normal. Each office has a different role.

Place to contact Use it when What it may do
State or local contractor board The contractor may be licensed, registered, bonded, or required to follow trade rules. May investigate, discipline a license, require correction, refer to bond or recovery options, or record a complaint.
City or county building department Work was unsafe, unpermitted, failed inspection, or may violate code. May inspect, issue correction notices, confirm permit records, or tell you what must be fixed.
State attorney general or consumer office The contractor used unfair, deceptive, high-pressure, or fraudulent practices. May mediate, track patterns, refer the complaint, or bring enforcement action. Find offices through state consumer offices or the NAAG complaint map.
FTC ReportFraud You believe there was fraud, a scam, or a bad business practice. Collects reports used by law enforcement. File at ReportFraud.ftc.gov.
Local police or sheriff The contractor disappeared with money, used fake identity, forged documents, stole property, threatened you, or targeted a vulnerable person. May create a police report or investigate possible crime. A report can also help a bank, insurer, or agency file.
Legal aid or lawyer referral You need advice about court, liens, contract rights, threats, elder exploitation, or a large loss. May explain rights, write letters, help with court papers, or refer you. Search through LSC legal aid or LawHelp.org.
Adult Protective Services or elder fraud help An older adult or person with a disability was pressured, confused, isolated, threatened, or financially exploited. May investigate exploitation or connect support. Use Eldercare Locator or call the Elder Fraud Hotline.
HUD-approved housing counselor The failed repair caused debt, mortgage trouble, foreclosure risk, or unsafe housing stress. May help with budgeting, credit, mortgage options, and housing referrals. Search through housing counselors.

Call script: contractor board or consumer office

“I need to file a complaint about a home repair contractor. I paid [amount] for [repair]. The contractor [abandoned the job / did unsafe work / will not refund / worked without permits]. Can you tell me if this contractor is licensed or bonded, what complaint form I need, and whether there are deadlines or recovery fund options in this state?”

Check license, permit, bond, and recovery fund options

Contractor rules vary a lot by state, county, city, and trade. A roofer, electrician, plumber, HVAC worker, mold contractor, general contractor, or handyman may be regulated differently. Some places license contractors at the state level. Some use local registration. Some trades require a license even when smaller jobs do not.

Search your state or local contractor board by business name, owner name, phone number, address, and license number. Do not rely only on the number printed on a card or truck. For example, Washington’s official contractor verify tool checks contractor registration, workers’ compensation account status, and other records. California’s license check searches contractor license status. Your state may use a different office.

Ask the board these questions:

  • Was the contractor licensed or registered when I signed and when work started?
  • Does the license cover this type of work?
  • Is there a bond, surety, trust fund, or recovery fund?
  • Is there a complaint deadline or written notice rule?
  • Can the board inspect the work?

Some places have repayment options only if the contractor was licensed. For example, New York City says its Home Improvement Contractor Trust Fund may repay eligible homeowners when a DCWP-licensed contractor did not complete the job or owes money. See NYC contractor tips.

Watch for liens from unpaid subcontractors or suppliers

A bad contractor may take your money and fail to pay workers or suppliers. In some states, unpaid parties may try to file a mechanic’s lien or construction lien against the property. Lien rules and deadlines are state-specific, so get local legal advice if you receive any lien notice.

Before paying a final amount to any contractor in the future, ask for lien waivers from the prime contractor, subcontractors, and material suppliers. Wisconsin’s consumer guidance says lien waivers can help prevent contractors, subcontractors, and material suppliers from trying to collect from homeowners who already paid. See Wisconsin’s home lien guidance.

If you receive a lien notice, do not ignore it. Call legal aid, a lawyer, or your state contractor board. Bring proof of payment and the contract.

If insurance or disaster money was involved

Be extra careful after disasters. Contractors may go door to door, pressure people, ask for large deposits, offer to “handle everything,” or claim they are approved by FEMA or your insurer.

If someone asked you to sign an assignment of benefits, call your insurer. The NAIC assignment warning explains that an assignment of benefits can transfer insurance claim rights or benefits to a contractor or other third party. Ask your state insurance department or a lawyer before signing or canceling anything.

If the issue involves disaster-related fraud, FEMA, or another federal disaster program, check FEMA’s disaster fraud page. The Department of Justice’s archived disaster fraud resources page says the National Center for Disaster Fraud closed on March 31, 2026, and lists agency-specific reporting contacts, including DHS OIG for FEMA-related fraud and the FTC for consumer fraud and identity theft after a disaster.

Common mistakes that slow down recovery

  • Waiting too long. Payment disputes, board complaints, lien responses, and court filings can have deadlines.
  • Only calling. Follow phone calls with text, email, or certified mail.
  • Throwing away receipts. Even a messy cash receipt, text, or bank withdrawal can help.
  • Giving away originals. Give copies, not your only original.
  • Assuming police collect money. Repayment often needs a civil, bond, insurance, or court path.
  • Hiring too fast. A second bad contractor can turn one loss into two.
  • Ignoring permits. Unpermitted work can affect safety, insurance, resale, and future repair help.

How to get the repair finished if you cannot afford to pay twice

Many homeowners cannot simply hire a new contractor after losing money. You may need help with the emergency repair, the legal problem, and the financing problem at the same time.

Start locally. Call 211 and ask for emergency home repair, weatherization, aging services, disability home modification, legal aid, and community action programs. Search your city, county, or state housing department for repair programs. Availability depends on location, income, ownership, funding, waitlists, inspections, and repair type.

USAGov’s home repair programs page warns that the federal government does not offer “free money” to individuals to repair or improve homes and that ads claiming free government money are often scams. It also explains that program eligibility may depend on income, age, property type, and location.

If your loss is disaster-related and your area has a declared disaster, SBA physical disaster loans may be an option. As of the current SBA page, homeowners may apply for up to $500,000 to repair or replace a primary residence, and renters and homeowners may borrow up to $100,000 for personal property. These are loans, not grants. Review SBA disaster loans and check the current disaster deadline before applying.

Call script: 211 or local housing office

“A contractor took my money and left my home repair unfinished. I cannot afford to pay twice. The repair is [roof / heat / plumbing / electrical / accessibility / storm damage]. Is there any emergency home repair, weatherization, legal aid, senior, disability, community action, or nonprofit program in my county that may help?”

Call script: legal aid

“I need help with a contractor dispute. I paid [amount], the work was not completed or is unsafe, and I may have permit, lien, or refund issues. I have a contract, payment proof, photos, and messages. Do you help with consumer home repair cases, or can you refer me to the right office?”

Red flags after you have already been hurt once

Scammers often come back for people who already lost money. Be careful if someone promises recovery, same-day repair, or grant access for an upfront fee.

  • They demand cash, wire transfer, gift cards, crypto, or payment apps.
  • They say they are “with FEMA,” “with the city,” or “approved by your insurer” but cannot prove it.
  • They say no permit is needed when the building department says one is needed.
  • They want you to sign blank forms or forms you cannot read.
  • They offer to waive your insurance deductible.
  • They ask you to transfer your deed or take out a home equity loan fast.
  • They say complaints will “ruin your chance” of getting the work done.

If a contractor’s financing papers involve your home, mortgage, deed, or a lien, slow down. The FTC warns that home improvement loan scams can leave homeowners with high-cost loans against their home. Talk to a HUD-approved housing counselor, legal aid, or a trusted lawyer before signing.

FAQs

Should I call the police if a contractor took my deposit?

Call police or sheriff if you believe the contractor stole money, used fake identity, forged documents, threatened you, damaged property on purpose, or targeted a vulnerable person. Poor work may be treated as civil, but you can still file consumer and contractor complaints.

Can I get my money back from a contractor board complaint?

Sometimes, but do not count on it. A board may discipline a license, mediate, inspect, or refer you to bond or recovery fund options. Ask what it can and cannot do.

What if the contractor was unlicensed?

Report the unlicensed work to your state or local contractor regulator and your consumer protection office. Unlicensed work may affect recovery fund options, permits, insurance, and court claims. Keep proof of the contractor’s name, ads, messages, and payment records.

Can I dispute a credit card charge for bad contractor work?

Possibly. Call the card company right away and ask about a dispute or chargeback. To protect legal rights for a billing error, the CFPB says you generally must send written notice within 60 calendar days after the charge appeared on your statement. Other rules may apply when the service was defective or only partly paid.

Should I let the same contractor come back?

Only if it is safe, documented, and you understand the risk. If the contractor has threatened you, worked without needed permits, demanded more money without a written change order, or damaged the home, talk to the licensing board, building department, legal aid, or your insurer first.

Where can I get help if I cannot pay for a second contractor?

Call 211, your city or county housing office, community action agency, Area Agency on Aging, disability resource center, weatherization provider, legal aid, and HUD-approved housing counselor. Help depends on local funding, repair type, income, ownership, inspections, and waitlists.

Update notes

Next review: August 17, 2026

This page should be reviewed for changes to federal complaint paths, SBA disaster loan limits, FTC and CFPB dispute guidance, state contractor recovery fund examples, and disaster fraud reporting contacts.

About This Guide

This HomeRepairGrants.org guide uses official federal, state, local, and high-trust nonprofit/community sources mentioned in the article, including FTC, CFPB, USAGov, SBA, FEMA, DOJ, NAAG, legal aid, 211, Eldercare Locator, NAIC, and contractor or consumer protection examples.

HomeRepairGrants.org is not a government agency, does not guarantee eligibility, and is not legal, financial, tax, medical, insurance, disability-rights, or government-agency advice.

Corrections: Email info@homerepairgrants.org with corrections.