Texas Home Repair Fraud Demand Letter

Sample Language

[Your Name]
[Property Address]
[City, State, ZIP]

[Date]

[Contractor Name]
[Business Address]

RE: Formal Demand for Damages - Violations of Texas Deceptive Trade Practices Act
Project: [e.g., Kitchen Renovation]
Contract Date: [DATE]
Contract Amount: $[AMOUNT]

Dear [Contractor Name]:

This letter constitutes formal demand under the Texas Deceptive Trade Practices-Consumer Protection Act (TX Bus & Com Code § 17.41 et seq.) for damages arising from your fraudulent misrepresentations, substandard work, and breach of contract.

FACTUAL BACKGROUND:

On [DATE], we entered into a written contract for [describe project - e.g., "complete kitchen renovation including custom cabinets, granite countertops, and appliance installation"] for $[AMOUNT]. You represented that: (1) Work would be completed by [DATE]; (2) Materials would be [premium grade/specified brands]; (3) Work would meet all building codes; (4) You were properly licensed and insured.

You received payments totaling $[AMOUNT] on [DATES]. Despite these payments, you:

1. Installed [inferior materials] instead of contracted [premium materials]
2. Abandoned the project on [DATE] with [X]% incomplete
3. Performed substandard work including [specific defects - leaking plumbing, unlevel cabinets, exposed wiring, etc.]
4. Violated building codes requiring $[AMOUNT] to correct per [Inspector/Licensed Contractor] estimate
5. [If applicable] Are not licensed/insured as represented

DTPA VIOLATIONS:

Your conduct violates multiple provisions of TX Bus & Com Code § 17.46(b):

- § 17.46(b)(5): Representing services have characteristics and quality they do not have
- § 17.46(b)(7): Representing work is of a particular standard/quality when it's substandard
- § 17.46(b)(12): Misrepresenting the agreement and your obligations
- § 17.46(b)(23): Failing to disclose material information (unlicensed status, inability to complete, code violations)

DAMAGES:

Your fraud has caused substantial economic harm:

- Payments Made to You: $[AMOUNT]
- Cost to Repair/Complete Work (per [Licensed Contractor] estimate): $[AMOUNT]
- Building Code Violation Corrections: $[AMOUNT]
- Rental Housing During Repairs: $[AMOUNT]
- Diminution in Property Value: $[AMOUNT]
- Total Economic Damages: $[AMOUNT]

Under TX Bus & Com Code § 17.50(b)(1), you are liable for: (1) Economic damages; (2) Damages for mental anguish (stress, anxiety from living in unsafe/incomplete home); (3) Up to three times economic damages for knowing violations; (4) Court costs and reasonable attorney fees.

Given the knowing and intentional nature of your fraud, I am entitled to treble damages of $[3x ECONOMIC DAMAGES] plus minimum statutory damages of $10,000.

DEMAND FOR SETTLEMENT:

As required by § 17.505, you have 30 days from receipt of this letter to make a settlement offer. I demand:

1. Immediate refund of $[AMOUNT PAID] for unperformed/defective work
2. Payment of $[AMOUNT] for repair/completion costs
3. Payment of $[AMOUNT] for consequential damages
4. Written agreement to: (a) Cease all work; (b) Remove any mechanic's lien filed; (c) Release all contract claims
5. Total Settlement Demand: $[AMOUNT]

Alternatively, I will accept your completion of the work in a workmanlike manner meeting all contract specifications and building codes, with independent inspection at your cost, plus $[AMOUNT] for damages already incurred.

CONSEQUENCES OF NON-COMPLIANCE:

Failure to respond within 30 days will result in filing suit in [COUNTY] District Court seeking: treble damages under § 17.50, statutory minimum damages, mental anguish damages, attorney fees, court costs, and injunctive relief.

I will also file complaints with: Texas Attorney General Consumer Protection Division, Texas Department of Licensing and Regulation, Better Business Bureau, and [local contractor licensing board].

[If fraudulent lien filed] Additionally, under TX Property Code § 53.156, your fraudulent mechanic's lien subjects you to liability for actual damages, exemplary damages up to $10,000, and attorney fees.

This letter satisfies the DTPA § 17.505 notice requirement and constitutes a prerequisite to litigation.

Sincerely,
[Your Signature]
[Your Name]