“help Needed: Builder Retired, Refusing To Refund My $500 Deposit For A Guitar That Was Never Started”

Hi everyone,

I’m in a frustrating situation with a custom guitar builder I worked with. In mid-2022, I paid a $500 deposit through PayPal for a custom build. Their website explicitly stated: “Under any circumstances of cancellation, the paid amount will be returned.”

For over a year, we communicated regularly, and I was assured that delays were normal and my guitar was in line to be built. At some point, they took down their website and social media accounts. When I asked about this, I was reassured that it was because they were retiring soon and didn’t want to take on more clients. Based on this, I trusted my guitar would still be built.

Fast forward to Thanksgiving 2024: I asked if the build had even been started. That’s when the builder told me they were no longer making guitars, admitted they hadn’t started the build, and refused to refund my $500 deposit. They described this as an “unfortunate circumstance of business.”

To my knowledge, the builder wasn’t operating as an LLC, and there’s no evidence of bankruptcy protections. I’ve saved all communication, including their confirmation that no resources were used and a screenshot of their refund policy. I also have an address because I sent parts to be used.

My Questions:

1. Since they weren’t operating as an LLC and have no bankruptcy protections, does this mean I can hold them personally liable for the refund? 2. Has anyone dealt with a similar situation involving deposits or custom builds, and how did you resolve it? 3. Is small claims court in Virginia realistic for this amount, given the circumstances? 4. Are there other strategies I might be overlooking to recover my money? 

I trusted this builder because they reassured me throughout the process. However, they admitted they hadn’t started the guitar and are now refusing to honor their stated refund policy. I appreciate any advice, legal or otherwise, on how to recover my $500.