Paying a deposit to a freelancer and then getting ghosted is more than just a bad experience — it’s a breach of trust and potentially a breach of contract. Whether you’re a business owner, startup founder, or just someone trying to get a logo, website, or article done, this situation puts you in a frustrating and time-consuming position.
The good news is that you are not powerless. If a freelancer disappears with your deposit, your next steps involve collecting solid documentation, attempting professional resolution, and escalating through legal or financial channels, including the option of filing a claim in small claims court if the amount and evidence support it.
The key is to act methodically, stay calm, and understand your rights.
Step 1: Make Sure They’re Aone
Before jumping to conclusions, verify whether the freelancer has truly disappeared or is just delayed. In practice, this means reviewing the last contact you had with them. Did they confirm receipt of your deposit? Did you both agree on a timeline or deadline? Have they communicated any delays or given reasons for missed milestones?
In many cases, clients don’t receive radio silence — they receive vague reassurances or empty promises (“sending it later tonight,” “just fixing a bug,” etc.) that stretch for days or even weeks. If more than a reasonable amount of time has passed without clear communication, and if any deadlines have been missed without explanation or apology, you can reasonably conclude the freelancer has abandoned the job.
Step 2: Collect and Organize All Evidence
The moment you sense trouble, start preserving a paper trail. Don’t wait for a legal threat to begin organizing. You’ll need a clean, well-organized record of every agreement, payment, and conversation to strengthen your case, even if you’re not sure yet how far you’ll escalate it.
Your records should include:
- Proof of payment (bank statement, PayPal confirmation, invoice)
- The agreed scope of work (email thread, contract, proposal, chat log)
- Screenshots or copies of all conversations and missed deadlines
- Any partial work delivered or promises made before they disappeared
This documentation will serve as the factual backbone if you later pursue a refund through a payment platform, file a dispute, or take legal action.
Step 3: Try to Resolve It Directly, Once and Clearly
Before escalating the issue, it’s essential — especially from a legal standpoint — to make one final, clear attempt to resolve things directly. Send a professional but firm message via all channels you have access to: email, freelancer platforms, even text if used.
State that you have not received the work you paid for, remind them of the original agreement, and ask for either a completed delivery or a refund within a specific time frame (usually 5 business days is reasonable). Make it clear that if no response is received, you will begin formal dispute procedures.
This shows good faith on your part and will be useful if you later need to demonstrate that you attempted to resolve the issue without legal involvement.
Step 4: File Disputes with the Platform or Payment Processor
If you hired the freelancer through a major platform like Upwork or Fiverr, initiate a dispute through their resolution center. These platforms typically have internal arbitration mechanisms to help with non-delivery claims. Be prepared to submit the full documentation mentioned above.
If the freelancer was paid directly via PayPal, Stripe, or a credit card, you may be eligible to open a payment dispute. Each provider has a window of time (usually 60 to 120 days) in which chargebacks or refund requests can be submitted.
For example, with PayPal:
– Step
– How It Works
- Open a dispute in the Resolution Center
- Choose “Item not received” or “Service not provided.”
- Escalate to a claim if no reply
- If the freelancer does not respond in 7 days, escalate automatically
- Submit all proof of agreement
- Upload contract, messages, and payment confirmation
Act quickly. The longer you wait, the more difficult it is to reverse the payment.
Step 5: Evaluate Whether to File in Small Claims Court
If you’ve tried all reasonable ways to get your money back — direct messages, formal emails, even platform disputes — and the freelancer continues to ignore you, then legal escalation may be your last, most effective option. For many cases involving deposit fraud, the best course of action is to file in small claims court — but only if your claim amount falls within the court’s financial threshold.
In the UK, the maximum claim at small claims court is typically £10,000, a limit that has been in place since it was raised from £5,000 in 2013 to make civil claims more accessible. This threshold helps determine whether a case is processed under the simpler “small claims track” or pushed into more complex procedures like the fast track or multi-track of the County Court system.
Let’s say you hired a freelancer for a website design job and paid a £3,500 deposit up front. They delivered nothing, stopped replying, and gave no explanation. That entire £3,500 could be pursued through small claims court — without needing a lawyer, and often without setting foot in a courtroom. Many claims settle before hearings, especially once a formal complaint is filed.
Here’s how the claim limits compare across several common jurisdictions:
– Jurisdiction
– Maximum Claim Limit (Small Claims Track)
- England & Wales – £10,000
- Scotland – £5,000
- Northern Ireland – £3,000
- Ontario, Canada – CAD 35,000
- California, USA – $10,000 (for individuals)
- Australia (NSW) – AUD 20,000
Step 6: Send a Demand Letter Before You File
If you decide to proceed legally, start by sending a formal demand letter to the freelancer. This is a short, signed letter stating what is owed, why, and what legal action you will take if they do not respond by a certain date (usually 10–14 days).
It should include:
- The total amount you are requesting (usually the full deposit)
- A summary of the agreement and breach
- A deadline to respond before legal action begins
- A statement that you’re prepared to file in small claims court
If you have their full name and address, send the letter via certified mail. If not, email it and include it in your small claims filing to show good-faith effort.
Step 7: Protect Yourself Going Forward
Once the dust settles — whether you recover your money or not — use the experience to adjust how you work with freelancers in the future. Always use a formal contract, even for small jobs. Clearly define delivery milestones tied to payments. Avoid paying large deposits (anything over 30–40% should be questioned), and try to use escrow systems or trusted platforms when possible.
For higher-risk projects, split the payment into smaller stages. Pay only when each stage is completed and reviewed.
Also consider using third-party escrow platforms like Upwork’s milestone system or escrow.com for direct hires. These platforms release money only when both sides agree the work has been completed properly.
Final Thought
Having your deposit stolen is infuriating, but it doesn’t mean the entire freelance economy is broken. There are thousands of honest, reliable freelancers out there who deliver incredible value. This experience is an unfortunate reminder that trust is something to build gradually, not given upfront without safeguards.
If you follow the right steps — documenting everything, communicating professionally, and escalating when necessary — you stand a real chance of getting your money back or at least holding the freelancer accountable. And next time, you’ll be even better prepared.
