Flooring scams to avoid: big deposits, phantom materials and vanishing installers

Updated November 11, 2026 · KeystoneProGuide editorial team

What does a flooring scam usually look like?

A deposit for materials, and then no floor. The flooring cases state attorneys general have published follow that pattern: money paid up front for wood, tile or carpet that never arrives, refunds promised and not paid, and a business that stops answering. Pennsylvania's home improvement law is written to limit exactly this, so knowing its rules is the best protection you have.

What have regulators found in flooring cases?

• North Carolina. In November 2023 the state's Department of Justice sued a flooring contractor for running a flooring contracting scheme, accepting payment for materials that were never delivered and work that was never completed. It received more than 80 complaints, many saying customers had been required to pay advance deposits and upfront fees and were promised refunds that never came. The court's judgment orders the defendants to reimburse consumers and bars them from any work that requires advance payment.
• Ohio. The Attorney General sued a man accused of advertising hardwood floor installation and refinishing online, taking money, delivering nothing and refusing refunds; five consumers reported losses of about $2,585. The office warned that some operators change business names regularly to hide a record of poor work.
• Pennsylvania. In August 2026 the Attorney General announced a $200,000 settlement and a lifetime ban for a Philadelphia-area home improvement contractor accused of accepting substantial payments and then failing to do the work, abandoning projects or doing unworkmanlike work. That case was not about flooring, but it shows the same pattern, and the release notes the contractor worked under several names. The office states that a settlement is not an admission of a violation of law.

How does Pennsylvania law limit deposits?

For a home improvement contract over $5,000, a contractor may not take a deposit of more than one-third of the price, or one-third plus the cost of special order materials designated in the written contract. No payment at all may be taken before the contract is signed. On a $15,000 floor, that puts the ordinary ceiling at $5,000 unless the contract lists special order materials and their cost.

The Ohio Attorney General's general advice runs the same way: a down payment is reasonable, but be skeptical of being asked for half or more before work begins, pay in stages as work is completed if you can, and be wary of cash.

What is the special order trick?

Calling ordinary stock flooring "special order" to justify a larger deposit or a higher price. Pennsylvania's act defines special order material narrowly: something that is not a stock item, is ordered for your specific contract and cannot be returned by the contractor for a refund or credit. The act lists misrepresenting an item as special order material, or misrepresenting its cost, as a form of home improvement fraud.

Other conduct the act defines as home improvement fraud includes:

• Misleading statements made to get you to sign, or to justify raising an agreed price.
• Taking an advance payment for materials or work and neither providing them by the date in the contract nor returning the money.
• Misrepresenting identity, such as concealing the contractor's real name, business name or address.

The act also bars advertising a price the contractor does not intend to charge. Fraud involving more than $2,000 is a third-degree felony, and the grade goes one step higher when the victim is 60 or older.

What warning signs do consumer agencies list?

The Federal Trade Commission lists contractors who:

• knock on your door because they are in the area;
• say they have materials left over from another job;
• pressure you for an immediate decision;
• want everything paid up front, or cash only;
• ask you to get the permits; or
• steer you to a lender they know.

The Ceramic Tile Education Foundation (CTEF), a tile industry education body, adds an installer whose contact information you cannot verify, who will not show you previous work, and a price so low you can hardly believe it.

What should you watch for after a flood or storm?

Speed. Pennsylvania's Attorney General warned after storms and flooding in 2025 that scammers see disasters as an opportunity. The office advises calling your insurer before signing a contract to confirm the work is covered, being wary of door-to-door pitches, and arranging with your bank or credit union for a Certificate of Completion, under which the bank pays the contractor for each stage only after approving the work. It adds that legitimate contractors do not ask for large sums before a contract is signed.

What can you do if you paid and nothing happened?

• Send a written refund request by certified mail, return receipt requested. The act makes it a prohibited practice to fail to refund within ten days of such a request when no substantial part of the work has been done and more than 45 days have passed since the start date in the contract.
• Keep everything. The FTC advises following up phone calls in writing and keeping copies of every letter and document.
• Complain. The Attorney General's Bureau of Consumer Protection takes complaints online, at 1-800-441-2555 or by email to scams@attorneygeneral.gov.

The contract terms that make these rights enforceable are set out in what Pennsylvania requires of flooring contractors. Checking a contractor before you pay anything is covered in how to choose a flooring contractor and questions to ask a flooring contractor. Businesses are listed on the flooring contractors directory page.

Sources

1. Attorney General Jeff Jackson Wins Judgments Against Two Scam Contractors, North Carolina Department of Justice
2. Attorney General DeWine Files Consumer Protection Lawsuit Against Alleged Craigslist Scammer, Ohio Attorney General
3. AG Sunday's Bureau of Consumer Protection Secures $200K Settlement, Lifetime Ban Against Philadelphia-Area Home Improvement Contractor, Pennsylvania Office of Attorney General
4. AG Sunday Warns Consumers of Potential Scams Following Storms and Flooding, Pennsylvania Office of Attorney General
5. 2008 Act 132 (Home Improvement Consumer Protection Act), Pennsylvania General Assembly
6. How To Avoid a Home Improvement Scam, Federal Trade Commission
7. The Homeowner's Guide to Hiring a Qualified Tile Installer, Ceramic Tile Education Foundation (CTEF)
8. Submit a Complaint, Pennsylvania Office of Attorney General