Contractor Took My $8,000 Deposit and Disappeared - What Can I Do? (2025)

I am absolutely livid right now and don't know what to do. Back in November I hired a contractor to do a complete kitchen remodel. He seemed legit - had a website, showed me photos of past work, gave me a written contract.

I paid him $8,000 as a deposit (40% of the $20,000 total job). He said he needed it for materials and to schedule his crew. We agreed work would start December 9th.

December 9th comes - nothing. No call, no show. I text him and he says "sorry, crew got delayed on another job, we'll be there Monday." Monday comes - nothing again.

This goes on for THREE WEEKS. Every time I call he has another excuse. Then right after Christmas his phone goes straight to voicemail. Texts don't deliver. I drove by the address on his business card - it's a UPS store mailbox.

The contractor took my money and disappeared. $8,000 gone. I feel like such an idiot. My wife is furious. We were supposed to have family over for the holidays and instead we have a half-demolished kitchen because I already started demo work myself.

What are my options here? Can I sue? Should I call the police? I saved all the texts and have the contract. Please help.

I'm sorry this happened to you. Unfortunately contractor scams like this are way too common. The good news is you have several legal options.

First question: Was this contractor licensed?

In California, any contractor doing work over $500 must have a valid CSLB (Contractors State License Board) license. This is critical because your remedies depend heavily on whether they were licensed.

If the contractor WAS licensed:

• File a complaint with the CSLB immediately at cslb.ca.gov
• The CSLB has a Consumer Recovery Fund that can pay up to $30,000 per claimant for losses caused by licensed contractors
• CSLB complaints can trigger license suspension/revocation which gives the contractor incentive to settle
• You can still sue in small claims court for the $8,000

If the contractor was NOT licensed (more likely in scam situations):

This actually works in your favor legally. Under California Business & Professions Code Section 7031, an unlicensed contractor cannot enforce a contract AND must return ALL money paid - not just your deposit, but any payments made. The law is extremely harsh on unlicensed contractors for exactly this reason.

You can look up the contractor's license status on the CSLB website. What name was on the contract?

I just checked the CSLB website. The license number on his business card comes back as "Inactive - Expired 2023" and the name doesn't even match. So he was using someone else's old license number??

This gets worse and worse. So he was operating unlicensed the whole time.

Mike - I went through almost this exact situation two years ago. Contractor took $6,500 and ghosted me. Let me tell you what actually worked for me.

Step 1: Send a formal demand letter

Before anything else, send a demand letter via certified mail to every address you have for this person - the UPS store, any home address you can find, etc. This creates a paper trail and is often required before you can file in small claims. There's a good template for this exact situation here: Unlicensed Contractor Demand Letter

Step 2: Skip tracing

Use BeenVerified or TruthFinder to find this person's real name and home address. The UPS store address won't work for serving court papers. If you paid by check you can sometimes get their banking info from your bank.

Step 3: Small claims court

File in small claims court. In California the limit is $12,500 for individuals. Costs about $75-100 to file. You don't need a lawyer.

With an unlicensed contractor, you're almost guaranteed to win if you can prove: 1) they weren't licensed, 2) you paid them, 3) they didn't do the work. Judges HATE unlicensed contractors.

I won my case and got a judgment. Collecting was harder but I eventually garnished his wages. Took about 8 months total but I got every penny back.

Here's the California Small Claims Guide that walks through the whole process.

As a licensed contractor myself, this kind of story infuriates me. These scammers make all of us look bad.

Warning signs you should watch for next time (for anyone reading this):

• Large upfront deposits: California law limits contractor deposits to $1,000 OR 10% of the contract price, whichever is less. A 40% deposit was already illegal.
• No physical business address: UPS stores and PO boxes are red flags
• License number that doesn't verify: ALWAYS check CSLB before signing anything
• Pressure to pay in cash: Legit contractors take checks and cards
• No workers comp insurance: Ask for proof - if they don't have it, you're liable if someone gets hurt on your property
• Won't provide references: Real contractors have past clients happy to vouch for them

Mike, I'm sorry you learned this the hard way. The $8,000 deposit alone was a violation of contractor law - that gives you additional ammunition in court.

Adding to what others have said - you should also consider filing a police report for theft by false pretenses or fraud.

Many people think contractor disputes are "civil matters" that police won't touch. But taking money with no intention of performing work is actually criminal fraud. The fact that he used a fake/expired license number is evidence of intent to deceive.

Why file a police report even if they don't arrest him:

• Creates official documentation of the crime
• Can be used as evidence in your civil case
• If multiple people report the same person, it can trigger an actual investigation
• Some jurisdictions have DA consumer fraud units that prosecute these cases
• A criminal record or warrant can motivate them to settle your civil claim

Also report to your local District Attorney's office - many have consumer protection divisions. And file a complaint with the state Attorney General.

The more paper trail you create, the harder it is for this guy to keep scamming people.

Following up with a summary of Mike's action plan based on this thread:

Immediate steps (do this week):

1. File a CSLB complaint online - even for unlicensed work, they track these complaints
2. File a police report for fraud/theft - go in person to your local station
3. Send a formal demand letter via certified mail (return receipt requested) - use the Contractor Abandonment Demand Letter template
4. Document EVERYTHING - screenshot all texts, save voicemails, photograph the current state of your kitchen

If no response within 10 days:

1. File in small claims court - bring copies of contract, payment proof, demand letter, and CSLB search showing unlicensed status
2. Serve the defendant (may need to hire a process server if you can't find a home address)
3. Prepare for your hearing - courts are very sympathetic to homeowners scammed by unlicensed contractors

Key legal points for your case:

• B&P Code 7031 - unlicensed contractor must return ALL compensation
• B&P Code 7159 - deposit violation (exceeded 10%/$1,000 limit)
• Civil Code 1689 - contract rescission for fraud

You have a very strong case. The law is heavily on your side here. Keep us posted on how it goes.