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 and practical options, but acting quickly is crucial for the best chance of recovery.

Immediate Steps to Take

Contact Ottawa Police immediately if you suspect fraud. While they may classify it as a civil matter initially, having a police report number strengthens your case with other agencies. You can file online at ottawapolice.ca or call the non-emergency line at 613-236-1222.

Report the contractor to the Better Business Bureau and Consumer Protection Ontario. Consumer Protection Ontario (ontario.ca/consumer or 1-800-889-9768) can investigate if the contractor violated the Consumer Protection Act, especially regarding deposit limits and contract requirements.

Legal Recovery Options

Under Ontario's Consumer Protection Act, contractors can only take deposits up to 10% of the contract value or $100, whichever is greater. If they took more, this strengthens your case significantly. You can pursue the contractor through Small Claims Court (up to $35,000) at the Ottawa courthouse on Elgin Street.

Check if the contractor was bonded or had any insurance that might cover your loss. Some legitimate contractors carry bonding specifically for deposit protection, though many don't advertise this.

Financial Institution Help

If you paid by credit card, contact your bank immediately to dispute the charge. Credit card companies often provide better protection than debit cards or cash payments. You typically have 60 days from your statement date to dispute charges, but don't wait.

If you paid by e-transfer or bank transfer, contact your bank's fraud department. While recovery is more difficult, they may be able to trace the funds or reverse recent transactions.

Professional Association Complaints

If the contractor claimed membership in any trade associations (like the Canadian Home Builders' Association - Ottawa chapter), file complaints with these organizations. They may have bonding programs or can take disciplinary action against members.

Check if they held any required licenses (ESA for electrical work, TSSA for gas work) and file complaints with these regulatory bodies at esasafe.com and tssa.org respectively.

What to Document

Gather all communications (texts, emails, contracts, receipts) and take screenshots of any online profiles, websites, or advertisements you found them through. Document the contractor's business name, address, phone numbers, and license numbers if provided.

Keep records of all your recovery efforts - police reports, complaint numbers, correspondence with agencies. This documentation will be essential if you end up in Small Claims Court.

Prevention for Others

Report the contractor to review sites and warn others in Ottawa community Facebook groups. Many scammers target multiple homeowners in the same area, so your warning could prevent others from losing money.

Realistic Expectations

Recovery of deposits from disappeared contractors is unfortunately difficult, with success rates varying widely. Contractors who take deposits and disappear often operate under multiple business names and may have already spent the money. However, pursuing all available options increases your chances and helps protect other Ottawa homeowners.

The key lesson is that legitimate contractors in Ottawa rarely require large deposits upfront. For future projects, verify all licenses through official channels, never pay large sums upfront, and ensure any contractor is properly insured and bonded before signing contracts.