Getting money back from a builder — the complete route map
The short answer: there are five doors to your money, in this order: (1) negotiate with a formal letter before action, (2) credit-card section 75 / debit chargeback, (3) small claims court + enforcement, (4) insurance (legal expenses cover), (5) Trading Standards/alternative schemes for the criminal side — which never pays you directly. Work them in parallel where you can.
REVIEWED BY: Sean McNamara on 2026-09-03
Door 1 — Negotiate from strength
- Your letter before action, with a schedule of loss and a 14-day deadline, is the cheapest and most successful tool. Most disputes settle here because the builder's alternatives (court, enforcement reports, bad reviews they can't rebut) are worse.
- Offer structure: a fair remedy (redo, or reasonable remedial cost) in exchange for completion by a date — in writing, "without prejudice" if it's a compromise talk.
- If they counteroffer low, don't reject rudely — counter once with reasons. Silence or aggression ends negotiations; reasoned counters continue them.
Door 2 — The payment rails
- Credit card (s.75, £100–£30,000): the lender is jointly liable for breach/misrepresentation — even if the builder has folded. Full guide.
- Debit card chargeback: free, time-boxed (typically 120 days), worth trying first for smaller sums.
- Bank transfer: only via APP-fraud/deception arguments; otherwise straight to door 3.
Door 3 — Court + enforcement
- Up to £10,000 (England & Wales): small claims track — fees from £35, designed for self-representation.
- Winning ≠ being paid: enforcement (warrant of control, attachment of earnings, third-party debt orders) is a follow-on step — GOV.UK enforcement guidance.
- Check the target first: Companies House status and whether the firm is worth suing (a dissolved shell with no assets turns a win into a certificate).
Door 4 — Insurance
- Home policy legal expenses cover — how to check.
- Insurance-backed warranties from the build — dig out the policy document.
Door 5 — The enforcement/scheme layer (no money, real leverage)
- Report via the Citizens Advice consumer service so it reaches your local Trading Standards — prosecution is their lever, not your refund.
- Trade bodies: if the builder is a member of a scheme (e.g. FMB, TrustMark), their complaints process can trigger warranties, mediation, or expulsion pressure.
- Ombudsman-type ADR: for builders there is no mandatory ombudsman; some scheme members offer redress/ADR — check the scheme's rules. If the builder has offered ADR in their terms, courts expect you to engage reasonably.
The decision table
| Your situation | First door | Notes |
|---|---|---|
| Paid by credit card | s.75 | Strongest single route |
| Deposit on card, balance bank | s.75 | Lender liability generally covers the contract price |
| Small sum, debit card | Chargeback | 120-day window |
| Builder gone quiet, contract live | Letter before action | Do this regardless |
| Structural defects | Letter + independent report | Evidence first |
| Builder dissolved | s.75 (if card) / restoration + court | Check Companies House |
| Under £10k, everything else | Small claims | Designed for self-representation |
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.