What recourse do I have if a contractor takes my deposit and disappears?

If a contractor takes your deposit and disappears in Ottawa, you have several legal recourses available, but time is critical - act immediately to protect your rights and potentially recover your money.

The first step is to contact Ottawa Police at 613-236-1222 to file a fraud report. While police may not investigate smaller amounts immediately, having an official report creates a paper trail that's essential for other recovery efforts. If the amount is substantial (typically over $5,000), they're more likely to investigate actively.

Next, 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 pursue charges under the Consumer Protection Act. If your contractor was supposed to be licensed (like electrical or gas work), also report them to the appropriate authority - ESA at 1-877-372-7233 for electrical contractors, or TSSA at 1-877-682-8772 for gas technicians.

For recovery of your money, you have several options in Ontario. Small Claims Court (up to $35,000) is often the most practical route - file at the Ottawa courthouse at 161 Elgin Street or online through ontario.ca/smallclaims. The filing fee is around $100-200 depending on the claim amount. However, winning a judgment doesn't guarantee payment if the contractor has no assets or has fled.

Check if the contractor had proper insurance and bonding. Call their insurance company directly if you have that information. Some legitimate contractors carry bonding specifically to protect against situations like this. Also verify through WSIB at wsib.ca whether they were registered - if they were supposed to have WSIB coverage but didn't, the contractor faces additional penalties.

Contact your credit card company or bank immediately if you paid by credit card or electronic transfer. Credit cards often provide chargeback protection for services not delivered, especially if you act within 60 days. Some banks may be able to reverse electronic transfers if fraud is proven quickly enough.

Consider contacting a lawyer who specializes in construction law if the amount is significant. Many offer free consultations and can advise whether pursuing the contractor is worthwhile. The Law Society of Ontario's referral service (1-800-268-8326) can connect you with qualified lawyers in Ottawa.

Red flags you should watch for in the future include contractors who demand large upfront payments (never pay more than 10% down or $1,000, whichever is less), have no fixed business address, pressure you to sign immediately, or can't provide proper licensing credentials. Always verify ESA licenses at esasafe.com/contractor-locator and TSSA credentials at tssa.org before hiring.

Unfortunately, recovery isn't always possible, especially with fly-by-night operators. This is why prevention is crucial - always verify licensing, check references, start with small projects, and never pay large amounts upfront. The Ontario government's consumer protection resources at ontario.ca/consumer provide detailed guidance on your rights and the complaint process.

For future projects, consider using contractors from verified directories and always ensure they have proper licensing, insurance, and WSIB coverage before any money changes hands.