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 to maximize your chances of success.

Immediate Steps to Take

Start by documenting everything - contracts, payments, communications, photos of incomplete or defective work, and any promises made. Contact the contractor in writing demanding resolution and keep copies of all correspondence. If you paid by credit card, contact your card company immediately as they may offer chargeback protection for fraudulent charges.

File Official Complaints

Report the fraud to Ottawa Police Service (613-236-1222) and file a complaint with the Ontario Consumer Protection Office at ontario.ca/consumer or 1-800-889-9768. If the contractor was supposed to be licensed (electrical work requires ESA licensing, gas work needs TSSA certification), report them to the relevant authority. You can verify legitimate contractors through esasafe.com/contractor-locator for electrical or tssa.org for gas work.

Legal Recovery Options in Ontario

For amounts under $35,000, Small Claims Court is often your most practical option. The filing fee ranges from $102-$500 depending on your claim amount. You can represent yourself, and the process is designed to be accessible. Contact Ottawa Small Claims Court at 161 Elgin Street (613-239-1591) for guidance.

For larger amounts, you may need to pursue action in Superior Court, though legal costs can be substantial. Consider consulting with a lawyer who specializes in construction disputes - many offer free initial consultations.

Construction Lien Act Protection

If you made payments for work that wasn't completed, you may have rights under Ontario's Construction Act. The Act requires a 10% holdback on payments, which should be held for 60 days after substantial completion. If you didn't follow this process, recovery becomes more difficult, but you may still have options.

What to Watch For Going Forward

Legitimate Ottawa contractors will have proper licensing (check ESA/TSSA databases), WSIB clearance certificates, and liability insurance. They'll provide detailed written contracts, reasonable payment schedules (never pay large amounts upfront), and proper permits through the City of Ottawa (613-580-2424, ottawa.ca/building).

Recovery Reality Check

Unfortunately, many fraudulent contractors operate with minimal assets, making full recovery challenging. However, official complaints help protect other Ottawa homeowners and may lead to criminal charges. The key is acting quickly - evidence disappears, contractors move, and legal time limits apply.

Contact the City of Ottawa's Building Code Services if permits were required but not obtained, as this adds another layer of violation that strengthens your case.

Remember: Prevention is always better than recovery. Always verify licensing, check references, and never pay large sums upfront for any construction project in Ottawa.