What the term means

An “unperformed service” arises when a consumer pays for work—be it home repairs, legal advice, event planning, or a streaming subscription—and the provider never delivers what was promised. At law that failure is usually treated as a breach of contract; when accompanied by deception or indifference it can also violate consumer-protection statutes.

Why both sides should care

• Consumers risk wasted money, lost time, and cascading expenses when a promised service never materialises.
• Businesses that miss deadlines or abandon projects invite charge-backs, regulatory investigations, civil lawsuits, and damage to reputation that marketing dollars cannot undo.

The legal backdrop

Federal layer

• The Federal Trade Commission Act forbids unfair or deceptive practices; the agency prosecutes firms that take advance payment and then disappear.
• For telephone or online sales, the Telemarketing Sales Rule and the Mail-, Internet-, or Telephone-Order Merchandise Rule require shipment—or a timely refund—within the period advertised or, if none is stated, within 30 days.

Texas layer

• The Deceptive Trade Practices–Consumer Protection Act (DTPA) makes it unlawful to accept payment for services and then either fail to perform or perform so poorly that the benefit of the bargain is lost. Aggrieved consumers may recover economic damages, and up to treble damages plus attorney’s fees when the conduct was knowing or intentional.
• Sector-specific statutes impose extra duties:
  
  • The Texas Property Code (chapter 27) governs residential construction and gives homeowners a notice-and-cure procedure before suit.
  • The Texas Health Spa Act and similar prepaid-services statutes mandate bonding or escrow for advance payments, with strict refund rights if the business closes or fails to open.
  • Occupations Code chapters regulating professionals—lawyers, contractors, electricians, cosmetologists, among others—authorize administrative penalties or license suspension for abandonment of a paid job.

Regulators—the Texas Attorney General, state licensing boards, local district attorneys, and the FTC—can demand restitution, levy civil penalties, and in egregious cases seek criminal charges.

Practical remedies

For consumers

1. Secure everything in writing: scope, price, milestones, completion date.
2. Pay by traceable means—credit card or check—so a charge-back or stop-payment remains possible.
3. Document contacts: emails, text threads, photos of unfinished work, screenshots of unreachable websites.
4. Send a swift demand for cure or refund; under Texas law that letter often preserves statutory claims and may trigger a business’s duty to respond in writing within 60 days.
5. If stonewalled, file a DTPA claim in justice court (up to $20,000) or district court for larger losses, or lodge a complaint with the relevant licensing agency and the Attorney General’s Consumer Protection Division.

For businesses

1. Draft clear contracts that spell out deliverables, deposits, progress payments, and a realistic timetable; avoid vague promises you cannot verify or control.
2. Communicate early and candidly about delays; offer revised schedules or partial refunds rather than silence.
3. Segregate advance payments in an account earmarked for the project so refunds remain possible if circumstances change.
4. Keep meticulous logs—work orders, material receipts, labour hours—to rebut later claims of non-performance.
5. Train staff on DTPA exposure and sector-specific refund rules; an informed team can resolve complaints before they escalate.

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Texas and federal law do not punish honest delay, but they come down hard on companies that pocket money and vanish or deliver only excuses. Consumers who know their contract and statutory rights—and who preserve a paper trail—can obtain refunds or court relief with surprising speed. Service providers who plan carefully, communicate openly, and honor refund obligations can turn potential legal battles into simple scheduling hiccups. Should a dispute reach stalemate, our law firm can craft the quickest, most cost-effective route to resolution while protecting both money and goodwill.