Protect Yourself From Shady Contractors

Margate Ventnor Shady Contractors

What to do if a contractor / builder runs off with your deposit, even if they seem totally legit?

You’ve done your due diligence—checked credentials, verified licenses and ensured the contractor was bonded and insured— yet things can still go wrong.

Fabian Ortiz posted the following recommendations on social media:

If a contractor disappears with your deposit, here are some actions you may want to consider.

1. Gather Documentation. Collect evidence of your agreement; signed contracts, payment receipts (checks, credit card statements, etc.) Emails, texts, other correspondence. Proof of contractor’s credentials (license, bond, insurance).

2. Contact Contractor Before Escalating. Try to contact them directly. Miscommunication or unforeseen delays could be the cause. Document every attempt to reach out via phone, email, or certified mail.

3. File Complaint with Authorities. New Jersey Division of Consumer Affairs: If the contractor is licensed in New Jersey, file a formal complaint. They can investigate and potentially revoke their license.

https://www.njconsumeraffairs.gov/

Police Report: If fraud is suspected, file a report with your local police department.

4. Contact Bond Provider. If the contractor is bonded, reach out to their surety bond company. Bonds are designed to protect consumers against this type of situation. You may be eligible for compensation.

5. Take Legal Action. For significant losses, consider hiring attorney to file small claims lawsuit or lien against contractor’s assets. In New Jersey, you can file in small claims court for amounts up to $5,000 (or up to $15,000 in special civil cases).

6. Leave Reviews to Warn Others. Share your experience on online platforms. This step also pressures the contractor to resolve the issue.

Recommendations: Avoid paying large deposit. In New Jersey, contractors can’t legally ask for more than 1/3 of the project cost upfront (except for special-ordered materials).

Verify Contractor’s History. Look for past reviews, complaints, or legal issues before hiring.

Use trackable payment methods. Avoid cash. Instead, pay by check or credit card for added security.

njconsumeraffairs.gov

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