I have been in the remodeling business since 1976.  I have heard some horror stories from both customers and contractors alike.  Some of my own experience has been an illustration in how quickly a good situation can unravel.  During more than 30 years of serving the public, I have had ample time to ponder the facts which sometimes culminate in creating a facade of false ideas.  A set of assumptions which can have the effect of producing undesireable effects for all parties.  
      I have had customers who have either had a bad experience with a contractor or has known someone who claims to have had such an experience.  First of all, yes - there are quite a few contractors who victimize the elderly and the unassuming consumer.  Such as the use of fast talking salesmen and complex contracts which unethically bind the consumer to high rates and legal instruments for possesion of his real property in the event of nonpayment.  These type of contracts usually appear with large companies who intsall siding, roofing and general remodeling or construction services.  I recall a dilapidated neighborhood in which a single mother signed a contract with Sears to install vinyl siding on a old and small two story home. The cost came to around $23,000.00 dollars.  The value of the home at that time was about $28,500.00 dollars. I would estimate that the cost of the materials came to about $3,600.00, which would bring the labor to over $19,000.00.  The reason for this was partly due to the finance charges which included a compound interest rate over a period of time.  And, she was required to sign her home over to the company, which would have made it a simple legal process to obtain her home in the event of nonpayment.  I've seen simular scenarios with some roofing companies.
      As a contractor, I also recall a customer who had a complete basement remodel.  The first half of the job went ok.  At the halfway mark, I did a walk through inspection with him (let's call him Tom) and afterwards he made another incremental payment.  I used this as an earmark to determine how well the projects were going and the extent of the customer's satisfaction. Before the halfway mark the customer began expressing concerns and personal criticism.  I attempted to address each concern by reassuring the customer in various ways.  When fifty percent of the work was complete, we did a walk through with Tom and his wife (ie..Mary).  Mary was quiet while Tom expressed more concerns, many of which either seemed over stated or illogically reactionary in nature.  At this point, though my assurances seemed to help, I decided to confront him.  I asked them if they had ever had a bad experience with a contractor.  Tom opened up and admitted that years ago he had a custom home built and when the short cuts began taking thier toll, the contractor wouldn't return his calls. Though we did our best to offer quality work for the right price, it seemed that Tom had an axe to grind. Too make a long story short, at some point thereafter, I decided to terminate the contract and made allowances between the amount of unfinished work and his remaining balance. 
      During my more than 20 years in the business, I've probably had simular experiences at least once or twice anually.  Jackleg contractors, salesmen who misrepresent and trusting consumers who hastily sign contracts make life hard for sincere, skilled laborers and installers who are out there because they love the work more then the money. 
      Though the courts do generally side with consumers in many cases, I think that the consumer is also responsible for his part to research and plan his own project before contacting a contractor.  And then to use logic and careful consideration before signing legal documents.  The magic word is 'research'.  Research the costs, practicalities and needs of the project.  Shop around for the types of materials, designs and colors and then research the contractor after recieving a visit and written estimate.  Take charge and actually interview the contractor in the home during the estimate process.  Never sign a contract before thouroughly studying and understanding the legal implications.  Understand the payment terms in the provisions and be sure to contact the local courts for any law suits.  If the contractor's court record shows a pattern of law suits, his customers may not be happy with his work or his contractural conditions may be too difficult on consumers.   
      If consumers would do the research, they wouldn't feel so vulnerable and would have the confidence to see the warning signs or qualities of a contractor before deciding whether to do business him.  Doubt leads to distrust, which creates baseless rationales.  Yes, because of dishonest contractors, the consumer must bare some of the blame for giving in.  And the fact is, that there is so much bad out there, that when a consumer finds a good contractor, he may be prone to stereotyping the guy before he has a chance to prove his sincerety and professionalsim.  And really - It's a drag on the work ethic when honest contractors have to screen potential customers for personal grudges - before deciding whether or not it's safe to work for a home owner.