Start by making the dispute easy to verify: what did you agree to, what did you pay, what did the contractor promise to do and when, what actually happened, and what did the failure cost you?

If a contractor took a deposit and never started, you may have a breach-of-contract claim and may be able to seek a refund. A refund isn't automatic, however. The contract, state law, the contractor's defenses, and the contractor's ability to pay can all affect the result.

Most disputes like this are civil contract matters. A missed start date, abandoned project, or string of unanswered messages doesn't by itself prove criminal fraud. Fraud requires additional evidence of intentional deception. Describe the facts instead: "I paid $8,000, the agreed start date passed, and no work was completed."

Before another contractor repairs or completes the project, preserve the site and your records. Also check whether a credit-card or other payment-provider deadline is approaching; don't let a long negotiation use up a deadline that could have been preserved.

What you need to prove

The same core evidence can help with a demand, payment dispute, mediation, licensing complaint, or court claim:

• An agreement: A signed contract is strongest, but an estimate, proposal, invoice, email, or text exchange may help establish the deal.
• Your payment: Show the amount, date, payment method, and recipient.
• The contractor's obligation: Identify the scope of work, materials, start date, completion date, and payment milestones.
• Nonperformance or defective work: Show that no work was done, the project was abandoned, or the result did not match the agreement.
• Your loss: Calculate the unearned payment, reasonable repair or completion cost, and other amounts the contract or applicable law may allow.
• Notice: Show that you gave the contractor a clear chance to respond or correct the problem if the contract or state law requires notice.

Don't rely on a bank statement alone. It shows that money left your account, but not necessarily what the contractor agreed to do or whether the money was misused.

Build an evidence file

Create one folder and a backup copy. Put the records in date order. A decision-maker should be able to understand the dispute without opening hundreds of unconnected messages.

Contract and payment records

Save:

• The signed contract, estimate, proposal, invoice, and every change order
• The scope of work, price, start and end dates, and payment schedule
• Deposit, cancellation, warranty, notice, arbitration, and attorney-fee terms
• Receipts, canceled checks, card statements, wire confirmations, and bank-transfer records
• The contractor's legal business name, license number, address, phone number, and email

An estimate or text exchange can help show the agreement even when there isn't a formal signed contract. Whether it is enough depends on the facts and the law that applies.

Don't assume you can obtain the contractor's private banking records simply because you paid them. Those records may require formal legal process.

Messages and calls

Preserve the complete context of:

• Texts and emails about the price, start date, delays, materials, and refund
• Voicemails and notes identifying the date and substance of important calls
• Messages in social-media accounts or payment apps
• Your unanswered requests for a schedule, explanation, or refund

Export conversations when possible. Keep screenshots that show the sender, recipient, date, and time, and don't edit or delete the original messages. If you plan to record a call, check your state's recording-consent rules first.

Photos, video, and project records

Take dated photos or video of:

• The site's condition before work began
• The site after the promised start date
• Unfinished work, defects, damaged property, and materials left behind
• The condition before another contractor repairs or completes the work

Keep the original files, not just cropped screenshots. Add a short note explaining when each photo was taken and what it shows.

If the issue is poor workmanship rather than total abandonment, get a written estimate from a qualified contractor or inspector. Ask for separate figures for correcting the original work and for upgrades or improvements you later chose. An estimate for improvements isn't automatically a loss caused by the first contractor.

Make a timeline

A simple log often explains the dispute better than a large message thread. Include:

1. When you signed or accepted the agreement
2. The date and method of each payment
3. The promised start and completion dates
4. Each missed appointment or changed promise
5. Your requests for an update or refund
6. The contractor's responses, including silence
7. The project's current condition
8. Repair, storage, temporary-housing, or other documented costs

Work out the amount you are seeking

Don't automatically demand the entire contract price if the contractor completed part of the job. The amount depends on what was delivered and the reasonable cost of putting you in the position the agreement promised.

• No work: The amount paid may be the main refund request, especially if the contractor supplied no usable materials. Contract terms and state law still matter.
• Partial work: You may need to use the reasonable cost to finish the work or the value of what was not provided. Don't count the same loss twice.
• Defective work: A reasonable repair cost or another legally recognized measure of damages may be more appropriate than the entire contract price.
• Materials: Establish whether materials were delivered, usable, paid for, or included in the agreed price.
• Extra costs: Keep invoices for emergency protection, cleanup, temporary repairs, or other expenses that directly resulted from the failure.

Calling a payment a "nonrefundable deposit" doesn't settle every dispute. The wording of the agreement, the contractor's performance, and applicable state law still control. A contractor may also have defenses based on cancellation, delay, access to the property, or changes you approved, so base the demand on documented facts.

Send a written demand

Read the contract before sending the letter. Look for a required notice, cure period, mediation clause, arbitration clause, or specific address for notices. If a payment-provider deadline is close, protect that option first rather than waiting for the contractor to answer.

Send the demand to the person and legal business named in the contract, using the address stated there or a reliable official business record. Use a trackable delivery method. Certified mail with delivery information is one option. Keep the receipt, a copy of the letter, and any returned envelope.

The Georgia consumer guidance for a contractor who was paid but did no work also recommends reviewing the agreement and sending a certified letter. Georgia's procedure is an example, not a nationwide deadline or rule.

Include:

• The agreement date and project address
• The amount paid and payment date
• The work that was promised
• What was not completed and when the problem became clear
• The amount you are requesting and how you calculated it
• A reasonable date for payment or a written response
• How the contractor can contact you

A direct, factual letter could say:

On [date], I paid $[amount] under the attached agreement for [work]. The agreement set a start date of [date]. As of [date], [describe the missing or defective work]. I request payment of $[amount] by [date]. Please respond in writing. If this is not resolved, I may use the payment provider's dispute process or pursue available complaints, mediation, arbitration, or court remedies.

Don't threaten criminal charges, exaggerate the loss, or post accusations online. Those steps can create a separate dispute and won't replace proof of the agreement and loss.

Contact the payment provider promptly

Your options depend on how you paid. A credit-card billing dispute is different from a debit-card, ACH, check, wire, or payment-app dispute.

Credit card

If you paid by credit card, contact the issuer immediately and ask about its billing-error procedure. Under the federal procedure described by the FTC's credit-card dispute guidance, written notice generally must reach the issuer within 60 days after the first statement showing the error.

Use the address and instructions on your statement or the issuer's dispute form. A phone call alone may not satisfy a written-notice requirement. Include the contract, payment record, demand letter, photos, and a short timeline. Explain whether the contractor provided no service, abandoned the project, or performed defective work.

A dispute isn't guaranteed. An issuer may evaluate a service that was never provided differently from a workmanship disagreement. If the contractor refunds or settles any part of the claim, tell the issuer so you don't recover the same amount twice.

Debit card, ACH, check, wire, or payment app

The federal credit-card billing-error process doesn't automatically apply to these payment methods. Contact the bank, credit union, payment app, or other provider quickly and ask whether it has a fraud, error, or merchant-dispute procedure.

Deadlines and reversal rights depend on the payment rail and the facts. Keep pursuing the contract claim even if the provider says it can't reverse the transaction. A failed reversal doesn't decide whether the contractor owes you money.

Pick an escalation route

You don't have to use every option, and some contracts require one route before another.

Licensing complaint

A state contractor licensing board may investigate violations, discipline a licensee, or explain whether a bond or homeowner recovery fund exists. It may not have authority to order a refund or collect a court judgment.

Ask the agency about:

• Whether the contractor was licensed for this type of project
• Filing deadlines and eligibility rules
• Required documents
• The contractor's bond
• Any recovery fund and its claim limit

A bond or recovery fund isn't automatic compensation. These programs can have separate deadlines, limits, and requirements, and some may require a judgment or other proof.

Mediation

Mediation can be useful when both sides will discuss a refund or completion plan. Bring the same organized records you would use in court. Ask beforehand whether participation is voluntary, what the mediator charges, and whether the result will be binding.

Mediation is usually non-binding until the parties sign an enforceable agreement. The agreement should state the payment amount, due date, release of claims, repair obligations, and what happens if a payment is missed.

Arbitration

Find the arbitration clause before filing in court. It may specify where and how the dispute must be filed, whether the decision is binding, and who pays the fees. Follow its notice and deadline requirements instead of assuming that small claims court is available.

Small claims or civil court

If the contractor ignores the demand, court may be the next step. Small-claims limits, filing fees, venue rules, service requirements, and available damages vary by state.

For example, Georgia describes magistrate court for claims under $15,000 in its consumer guidance. That amount is a Georgia example and shouldn't be applied to another state.

Before filing:

1. Identify the correct person or business entity from the contract and state business records.
2. Confirm that the court has jurisdiction over the defendant and project.
3. Calculate a specific amount, separating the principal, repair costs, fees, and any interest you are claiming.
4. File the required forms and serve the defendant exactly as the court rules require.
5. Prepare a one-page timeline and an exhibit list.
6. Organize the contract, payment proof, communications, photos, estimates, and delivery records.
7. Explain what happened in order rather than focusing on whether the contractor is a bad person.

A default judgment may be possible if the contractor doesn't respond, but only after proper service and compliance with court rules. A judgment also isn't the same as collecting money. Ask the court or a local legal-aid service about lawful collection procedures and whether the contractor appears to have reachable assets.

Check deadlines and state-law limits

There is no single nationwide deadline for every contractor deposit claim. The time limit may depend on whether you assert breach of contract, fraud, a consumer-protection violation, a bond claim, or another legal theory. The contract may impose its own notice or arbitration deadline.

A demand letter, licensing complaint, or negotiation may not pause every deadline. Check your state court rules, licensing agency, payment provider, and contract promptly. If the amount is substantial, a local attorney can help identify the claim and deadline before an option expires.

Reduce the risk on the next project

The FTC's home-improvement scam guidance recommends checking customer reviews, getting multiple estimates, and waiting to make the final payment until the work is finished and satisfactory. Also:

• Verify the contractor's license, insurance, references, and legal business name through official sources.
• Use a written contract with a detailed scope, materials, schedule, permits, cleanup duties, warranty, and payment milestones.
• Ask what each upfront payment covers. Deposit limits are state-specific, so don't assume a particular percentage is legal everywhere.
• Use traceable payments and keep receipts.
• Put every change in writing before paying for it.
• Don't let pressure at your door push you into signing a contract or financing document.
• Read any home-improvement loan or home-equity paperwork yourself. The FTC warns that some scams can result in a loan secured by your home.
• Hold back the final payment until the agreed work is complete and you've checked it.

Common questions

Can I recover a deposit if the contractor did no work?

Possibly. The claim is stronger when you can show the payment, the promised start date, the absence of work, and a written request for a refund. The contract, state law, the contractor's defenses, and the contractor's ability to pay still matter.

Are texts and photos enough?

They can be persuasive when they show the agreement, payment, missed promises, and the site's condition. Preserve full conversations and original files rather than relying only on a screenshot. Courts and other decision-makers apply their own evidence rules, so no single record guarantees a result.

Is a licensing complaint enough to get my money back?

Not necessarily. A licensing agency may investigate or discipline a contractor, but many agencies don't function as collection courts. Ask whether a bond or recovery fund exists, and consider a demand, payment dispute, mediation, or court claim when appropriate.

How long do I have to sue?

There isn't one U.S. deadline. Check the limitation period for your state and claim type, along with any contract deadline for notice or arbitration. Payment-provider and bond deadlines can be shorter, so gather the records and check those first.

This is general information for U.S. consumers, not legal advice. Today, back up the contract, payment records, messages, photos, and timeline, then check the deadline for your payment method and state before sending the demand.