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A Contractor Took Your Money in California and Didn’t Finish: Your Recovery Playbook (2026)

Last updated: June 2026. General information for California homeowners, not legal advice.

If a contractor took your deposit or progress payments and walked off the job, you are not without options, but the order you act in matters. This page lays out the recovery steps California gives you, in sequence: terminate and document, file a CSLB complaint, claim the contractor’s bond, take it to small claims or civil court, and report it to the state. It also explains, plainly, what each step can and cannot do, so you don’t waste time on the wrong one.

How to use this page. The steps below describe California’s public processes through the Contractors State License Board (CSLB), the contractor’s surety bond, and the courts. Deadlines apply at several stages, so act sooner rather than later. For a large loss, talk to an attorney early; this page is a roadmap, not a substitute for legal advice.

Key Takeaways

  • A CSLB complaint can discipline the contractor’s license, but the CSLB cannot order the contractor to repay you. To recover money, you file a bond claim or go to court.
  • Every licensed California contractor must carry a $25,000 license bond. You file a bond claim directly with the surety company, not with the CSLB, generally within two years of the violation or one year of project completion.
  • California small claims court handles disputes up to $12,500 for individuals; larger losses go to regular civil court.
  • Deadlines run from the date of the violation, so move quickly, document everything, and get legal advice early for a large loss.

First: terminate in writing and lock down your records

Before you file anything, create a clean paper trail. Send the contractor a written notice, by mail and email, stating that the work has stopped and that you consider the contract terminated, with a reasonable deadline to respond. Then gather everything in one place: the signed contract, every invoice and change order, copies of checks and bank or card statements, texts and emails, photos of the work as it stands, and any permits (or proof that none were pulled). Dates matter. The strength of every step below depends on documentation you can hand over.

Step 1 — File a CSLB complaint (what it can and can’t do)

File a complaint with the California Contractors State License Board. The CSLB investigates violations of contractor license law, and it generally can act on violations going back up to four years. A complaint puts the conduct on the public record and can lead to citations, license suspension, or revocation.

Understand the limit, though: the CSLB cannot order a contractor to pay you back. It acts against the license, not for your restitution, and an investigation does not guarantee you recover a dollar. Treat the CSLB complaint as the step that holds the license accountable and feeds the public record, then use the steps below to actually recover money.

Step 2 — Claim the contractor’s $25,000 bond

Every licensed California contractor is required to maintain a $25,000 license bond. This is one of your most direct paths to money. You file the claim directly with the bonding company (the surety), not with the CSLB and not with a court. Find the surety on the contractor’s CSLB license record, then submit your claim with your documentation.

Deadlines are strict. As a general rule, a bond claim must be filed within two years of the violation or one year of project completion, so do not wait. Be aware that the bond is capped at $25,000 total and may be shared among multiple claimants (see below).

Step 3 — Small claims or civil court

For amounts the bond won’t cover, the courts are your route. California small claims court handles disputes up to $12,500 for individuals (and $6,250 for businesses), with no lawyer required and low filing fees. For larger losses, you file in regular civil court, where an attorney is worth the cost. If your main goal is recovering what you paid, the CSLB itself points homeowners toward civil action, and for smaller amounts it can help you pursue a small claims case.

Step 4 — Report to the Attorney General and your DA

If the pattern looks like fraud, including large upfront demands, money collected for work never started, or the same operator behind multiple abandoned projects, report it beyond the CSLB. File with the California Attorney General’s public inquiry unit and with your county District Attorney’s consumer or real-estate fraud division. These offices handle the criminal and large-scale civil side, and the bigger ADU cases in California have moved through exactly these channels.

The hard truth about the $25,000 bond

California requires the same $25,000 license bond from nearly every contractor, regardless of company size. When a builder collapses, that single bond is often the only pooled money available, and it can be split among dozens or hundreds of claimants who may each have lost $200,000 or more. The math is brutal, and it is why recovery after the fact is usually partial at best. The most reliable protection is not a remedy you use afterward; it is checking a contractor, and the people behind the company, before you hand over a deposit. California also caps that deposit by law: a contractor cannot collect more than $1,000 or 10% of the contract price, whichever is less.

Frequently Asked Questions

Can the CSLB get my money back for me?

No. The CSLB investigates and can discipline a contractor’s license, but it cannot order the contractor to repay you, and an investigation does not guarantee restitution. To recover money, file a claim against the contractor’s bond or pursue the matter in small claims or civil court.

How do I claim a contractor’s bond in California?

Every licensed California contractor must carry a $25,000 license bond. You file the claim directly with the bonding company (the surety) listed on the contractor’s CSLB license record, not with the CSLB or a court. As a general rule, file within two years of the violation or one year of project completion, and include your contract, invoices, payment records, and photos.

How much can I sue for in small claims court?

As of 2024, California small claims court handles individual claims up to $12,500 (and $6,250 for businesses). You don’t need a lawyer and the filing fees are low. For losses above that limit, you file in regular civil court, where it’s worth consulting an attorney.

What are the deadlines to act?

Deadlines vary by step and generally run from the date of the violation. The CSLB can act on license-law violations going back up to about four years; a bond claim must generally be filed within two years of the violation or one year of project completion; and court cases have their own statutes of limitation. Because the clocks differ and start early, act as soon as the work stops.

Is a large upfront deposit even legal in California?

No. Under California Business and Professions Code §7159.5, a contractor cannot collect more than $1,000 or 10% of the contract price, whichever is less, as a down payment on a home improvement contract. For any project over $10,000, the maximum legal deposit is $1,000. A demand for tens of thousands upfront is a red flag.

How do I make sure this never happens again?

Before you sign or pay anyone, run the company and the names of its principals through our free Contractor License Lookup, which checks CSLB license status, classification, bond, workers’ compensation, and complaint history. Keep deposits within the legal limit and tie every payment to inspected, completed milestones.

Don’t let it happen twice

The surest recovery is the one you never need. Check before you pay.

→ Verify a contractor’s CSLB license, bond & insurance
→ The deposit law: $1,000 or 10%, whichever is less
→ See California ADU builders that have collapsed or been accused

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