How Much Deposit Can a Contractor Ask For in New Hampshire?
New Hampshire's Consumer Protection Act (RSA 358-A) forbids unfair or deceptive acts in these transactions, but it does not cap how much deposit a contractor may request.
The New Hampshire statute cited here, the Consumer Protection Act, does not set a numerical ceiling on the deposit or down payment a contractor may collect before work begins. What governs the transaction instead is the state's general consumer-protection law, RSA 358-A, which prohibits unfair or deceptive acts and practices in trade or commerce and gives an injured customer a private right to sue. The paragraphs below set out the New Hampshire rules that actually bear on a contractor deposit, each tied to the verbatim statutory text.
Rules that bear on your deposit
New Hampshire's Consumer Protection Act declares it unlawful to use any unfair method of competition or any unfair or deceptive act or practice in the conduct of trade or commerce within the state, which is the standard a contractor's deposit practices are measured against. 1
The Act defines trade and commerce broadly to reach the advertising, offering, sale, or distribution of services and property, so a home-improvement contractor's dealings with a customer fall within its scope. 2
A customer injured by an unlawful practice may bring a private action, and the statute fixes recovery at actual damages or $1,000, whichever is greater, with enhanced damages available for willful or knowing violations. 3
A violation of the Act's core prohibition can also carry criminal exposure, since a person convicted of violating RSA 358-A:2 is guilty of a misdemeanor if a natural person and a felony otherwise. 4
Enforcement of the chapter is assigned to the consumer protection and antitrust bureau of the department of justice, which is the state office that pursues deceptive contractor conduct. 5
The Act exempts certain regulated transactions, such as those under the jurisdiction of the bank, securities, insurance, or public utilities regulators, from its provisions. 6
Sources
New Hampshire's RSA 358-A:2 states that it is unlawful for any person to use any unfair or deceptive act or practice in the conduct of trade or commerce within the state.
RSA 358-A:1 defines trade and commerce to include the advertising, offering, sale, or distribution of services and property, tangible or intangible.
RSA 358-A:10 provides that a prevailing plaintiff's recovery is actual damages or $1,000, whichever is greater.
RSA 358-A:6 provides that a person convicted of violating RSA 358-A:2 is guilty of a misdemeanor if a natural person, or a felony if any other person.
RSA 358-A:4 provides that the chapter is administered and enforced by the consumer protection and antitrust bureau of the department of justice.
RSA 358-A:3 provides that certain transactions, such as those subject to the jurisdiction of the bank commissioner, are exempt from the chapter.
Frequently asked questions
- Does New Hampshire cap how much deposit a contractor can ask for?
- The New Hampshire statute cited here does not set a specific dollar or percentage limit on a contractor's deposit or down payment. A deposit demand is instead governed by the general prohibition on unfair or deceptive practices in RSA 358-A, so an unreasonable or misrepresented deposit could expose the contractor to a consumer-protection claim rather than to a fixed cap.
- What can I do in New Hampshire if a contractor takes my deposit and does not perform?
- Because RSA 358-A gives a private right of action, a customer injured by an unfair or deceptive practice may sue for actual damages or $1,000, whichever is greater, plus costs and attorney's fees, with enhanced damages for willful conduct. Complaints can also be directed to the consumer protection and antitrust bureau of the New Hampshire Department of Justice, which administers and enforces the chapter.
Last reviewed August 4, 2026
This page is general information about state law, not legal advice. Laws change, and how they apply depends on the facts of your situation.