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Refund from crooked roofing contractor question

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yellowkharma

Junior Member
What is the name of your state (only U.S. law)? GA

We gave a roofing contractor $4000 of insurance money to replace our roof. After a month, he still had not supplied us with his bid, business license or insurance certificate. When we demanded our money back, he only gave us a portion and not the entire amount.

We never signed a contract and materials were never ordered, however in the memo section of his check he wrote, "cancelled contract".

Should we cash this check and at least take what we can and pursue the rest legally? Or should we not cash the check at all until we receive the full amount?
 


Dandy Don

Senior Member
What factors made you all want to do business with this person in the first place? Isn't the bid supposed to be made before any money is paid to him?

Yes, you can cash the check and sue him for the rest in small claims court. How much did he give you back?

Also report him to the Better Business Bureau and to the state attorney general's office so that other people can be protected from being treated so shabbily in the future.
 

yellowkharma

Junior Member
Thanks for replying, Don.

The reason we chose to go with this guy is because he is a neighbor and was trying to "build his business". My husband is in contracting and could have gotten this done on his own, but we were trying to be "good and trusting citizens" and also trying to help out a new business owner/ neighbor. Basically, trying to "be nice"... and trusting. Our mistake.

Because of the circumstances listed above, this deal was a handshake deal. He agreed to supply us with his bid, business licence and insurance certificate listing us as the additional insured all at the same time.

When the check arrived, we were informed he was "waiting on the insurance company to list us on his policy and it would be back to him in a few days - and he would give us all the paperwork together" and that we should go ahead and let him order materials so they would be here when the paperwork was completed. Because he is a "new business" - he said he had to "prepay" for materials and that is why he needed the money upfront.

He cashed our check, a month went by - and still no paperwork or materials. When we told finally told him we were no longer interested in using him and wanted our money back, he tried hitting us up for an estimate fee - there was never an estimate... a 15% restocking fee - there were never any materials... a 25% contract cancellation fee - there was never a contract. After much arguing, he did write us this check, minus $300.00 and he wrote "cancelled contract" in the memo section.
 

BL

Senior Member
Gee , you're lucky it was only minus $300.00 .

Make sure the money is in the bank account , and if so cash it now .
 

yellowkharma

Junior Member
Should we "cash" it or put it through our banking institution for a paper trail?

The money is there. We verified it with his bank this morning.
 

yellowkharma

Junior Member
WOW!

Just found out he submitted a "completion order" to another neighbor's insurance company and requested final payment from the insurance company to be paid to him -and same situation there.... No bid, no licence, no insurance and no materials!! - Lucky for them, they have not paid him anything yet..

Maybe I am a bit behind the times, but Isn't this "insurance fraud"???
 

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