How do I recover money from a fraudulent contractor?

If you've been defrauded by a contractor in Ottawa, you have several legal avenues to recover your money, but acting quickly is crucial for the best chance of success.

Start immediately by documenting everything - contracts, payments, photos, text messages, and emails. This evidence will be essential for any legal action or insurance claims you pursue.

Report to Authorities First

Contact Ottawa Police at 613-236-1222 to file a fraud report if the contractor took money without performing work or used deceptive practices. While police may not recover your money directly, having an official report strengthens your case with other agencies and civil court.

File a complaint with the Ministry of Government and Consumer Services through ontario.ca/consumer or call 1-800-889-9768. They can investigate unlicensed contractors and may help facilitate resolution, though they don't order refunds directly.

Check Insurance and Bonding

If you paid by credit card, contact your card company immediately to dispute the charges under consumer protection provisions. Credit card companies often provide stronger protection than other payment methods.

Verify if the contractor had proper insurance through their provider - sometimes legitimate contractors with temporary financial problems can work with their insurer to resolve disputes.

Legal Recovery Options

For amounts under $35,000, file a claim in Small Claims Court through ontario.ca/small-claims-court. The filing fee ranges from $102-$500 depending on your claim amount. Small Claims Court is designed for self-representation and moves relatively quickly - typically 3-6 months in Ottawa.

For larger amounts, you'll need to pursue action in Superior Court, which requires legal representation and involves higher costs but allows for greater recovery amounts.

Construction Lien Rights

If work was started on your property, you may have lien rights under Ontario's Construction Act. You must file a lien within 60 days of the work stopping. Contact a construction lawyer immediately if this applies - lien rights are powerful but have strict deadlines.

What to Watch For Going Forward

Many fraudulent contractors target the same areas repeatedly. Alert your neighbors and consider posting on local Ottawa Facebook groups or Nextdoor to warn others.

Be extremely cautious of any contractor who demands full payment upfront, lacks proper licensing (check ESA at esasafe.com for electrical, TSSA at tssa.org for gas work), or cannot provide local references and insurance certificates.

Realistic Expectations

Recovery depends heavily on whether the contractor has assets to seize. Many fraudulent contractors operate with minimal assets, making recovery difficult even with a court judgment. However, legitimate contractors who've made mistakes often settle when faced with legal action to protect their reputation and licensing.

The sooner you act, the better your chances. Contractors who are still operating locally are more likely to settle than those who've disappeared entirely.

For complex cases or significant amounts, consult with a lawyer who specializes in construction law - many offer free initial consultations to assess your case strength and recovery prospects.