Builder refusing to refund a deposit — the recovery sequence
The short answer: a deposit is recoverable when work never started or the builder breached first. Sequence: written demand (14 days) → card chargeback/section 75 → small claims. Report the retention pattern to Trading Standards in parallel.
REVIEWED BY: Sean McNamara on 2026-09-03
Is the deposit owed back?
- Work never started: recoverable in full in most cases.
- You cancelled a contract signed in your home: a 14-day cancellation right applies, and only proportionate costs for work genuinely done can be kept.
- Builder breached first: the deposit is part of your damages — see the schedule of loss.
The sequence
1. Letter before action — "refund of £X paid [date]", 14 days, proof of posting. 2. Paid by card? Section 75 / chargeback — £100+ on credit card makes the lender jointly liable. 3. Small claims — deposit + fee + interest. 4. Report via the Citizens Advice consumer service → Trading Standards. Deposit-retention patterns matter to enforcers.
Scotland: same logic, Simple Procedure.
This page is general information, not legal advice. Verified 2026-09-03.
Preparing a claim? EvidenceCanvas (Casewright) helps you organise your evidence and draft pre-action documents for the small claims track. It is not a law firm and does not give legal advice.
Reviewed by Sean McNamara · 2026-09-03 · Independent information directory — not legal advice.