Investor · San Jose, CA · Member since 2016 · 15 posts · 4 votes
I hired a contractor and paid $6k upfront three years ago. He never did any work and disappeared. I later found out he’s been scamming people for years and has prior felony convictions. I took him to small claims court and received a default judgment in my favor. I then sent the judgment to a collections agency, they contacted him several times, he told them to stop calling. They said they can’t continue because it is considered a "cease-and-desist" and they could be exposed to harassment claims if continued.
Has anyone successfully collected on a judgment in a situation like this? What methods or legal processes actually worked for you? This guy clearly knows how to exploit the system.
Contractor · Romeoville, IL · Member since 2015 · 198 posts · 137 votes
6mo
Find a pay for performance GC. Don't give someone a deposit. Work gets done then pay in draws that ensure items are completed up to standards and code. Contractors are protected by lien rights so a deposit isn't required if the contractor is financially sound.
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
7mo
First of all, another collection agency might not be as much of a wuss about it.
But the more important point here is you’ve taken this way farther than most people do so pat yourself on the back and consider it a payment into your education. From now on, vet contractors with a stringent system before advancing any money unless it’s for materials onsite or completed labor.
This dude doesn’t have your money anymore anyway. It’s been spent.
You should speak with a lawyer in your jurisdiction to confirm whether wage garnishment is available as a judgment-enforcement tool. It may only work if you know where the contractor works or banks.
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
7mo
@Lenny Markus, did you report to police? If your fact pattern is as you said and they did ZERO work then it should be some sort of fraud offense. Often police are reluctant to bother with these issues unless you PUSH THEM HARD about it or even get TV news reporters involved.
The difference is that in most places if convicted, they will be ordered to pay restitution and the court collects that for you unlike a civil judgment which is very hard to collect.
@Lenny Markus, did you report to police? If your fact pattern is as you said and they did ZERO work then it should be some sort of fraud offense. Often police are reluctant to bother with these issues unless you PUSH THEM HARD about it or even get TV news reporters involved.
The difference is that in most places if convicted, they will be ordered to pay restitution and the court collects that for you unlike a civil judgment which is very hard to collect.
We did. They did not get involved as there was a contract signed, so it was a "civil dispute".
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
7mo
@Lenny Markus, I would contact the district attorney! I would also explain to the police officers that a signed contract is called "EVIDENCE"!
It gets hairy, BUT if they did ABSOLUTELY NO WORK then it is clearly fraud and not a civil dispute. Police and even DA's don't like to deal with these things because they happen a lot, but if pressed they will sometimes prosecute.
If the contractor did SOME WORK, then they really will almost never prosecute because then its a matter of a dispute over details of the contract, but when ZERO work is done its EASY for them to prove there was a fraud committed.
If this contractor has any kind of history of this behavior, I might even get a local consumer reporter with a TV station involved. The DA might be coerced into prosecuting with some publicity.
Contractor · Romeoville, IL · Member since 2015 · 198 posts · 137 votes
6mo
Find a pay for performance GC. Don't give someone a deposit. Work gets done then pay in draws that ensure items are completed up to standards and code. Contractors are protected by lien rights so a deposit isn't required if the contractor is financially sound.
Find a pay for performance GC. Don't give someone a deposit. Work gets done then pay in draws that ensure items are completed up to standards and code. Contractors are protected by lien rights so a deposit isn't required if the contractor is financially sound.