Millions of homeowners hire contractors every year, and are thrilled with the results they get, but it’s “practically the norm of homeowners who get a horror story…

  • Hire an attorney.

  • It’s another expense and it takes time, but it’s often the best option for getting your money back if the amount is above what your state recovery fund allows in a complaint (typically $20,000).

  • Small claims court.

  •  If the amount is $10,000 or less, or whatever limits your state’s small claims court allows for litigation, this might be your best option. No attorneys are allowed and you represent yourself with documentation, photos, contracts and other “evidence.” If the contractor fails to show for the hearing, you win by default. But, it’s up to you to pursue collection of your claim/win.
  • Contact the state’s licensing board.
  • State Board’s for Contractors licenses oversee the businesses engaged in the construction, removal, repair, or improvement of facilities on property owned by others. They issue, and can cancel contractor licenses. Contractor licenses consist of two parts: the class of license (A, B, or C), which determines the monetary value of contracts/projects that may be performed, and the classification/specialty, which determines what type of work is allowed.
  • Consumer reporters. If you’re lucky enough to live in an area where there is a television, radio, or print reporter who acts on the behalf of consumers to right wrongs and expose fraud, you might be able to have them investigate and report on your issue for free. Simply call your local television or radio station to ask.
  • Withhold further payment. Contractors often “rob Peter to pay Paul,” as the old saying goes. In other words, they use the funds they collect from one customer to complete or pay for the job of another. It’s a dangerous way to run a business, but many contractors do it.
  • The Contractor, or Homeowner’s Recovery Fund. The Contractor Recovery Fund (sometimes called a Homeowner’s Recovery Fund) compensates owners or lessees of residential property who have suffered an actual and direct out-of-pocket loss due to a licensed contractor’s fraudulent, deceptive or dishonest practices, conversion of funds or failure of performance.

Continue reading at https://www.homes.com/blog/2018/02/five-ways-to-get-your-money-back-from-bad-contractors/