Pay your contractor by credit card when you can. Under federal and state law, in most cases, you have the right to assert any claims or defenses you have against the seller of the goods or services against the credit card company. This generally means that if the goods or services are defective, you can refuse to pay the credit card company until the problem is corrected.
Before selecting a contractor for your next job, contact your local or state consumer agency and Better Business Bureau for information on contractors’ licensing or registration requirements and complaint records. Some states require licensees to pass tests for competency and scrutinize licensees for financial solvency. Some states also have a fund to cover some financial losses that result from problems with licensed contractors.