ServiceMagic, now HomeAdvisor changed their name not to better educate their customers, but instead because they face massive complaints nationwide and are on multiple consumer watches. I know how they really work because I worked there quite some time.
They buy leads from other sources, that is why a lot of customers say that they got so many calls. Their credit dept only has a certain amount worth of credits they can give out. They do not train their employees right so they don;t know what the truth is. They say they use the ssn to do a background check but they only use the ssn for collections and they only do a free public records check.
Many accounts are wrongly denied. They also mask contractors business owners numbers. So instead of the contractor getting a free call from some directory HA gets the call. Google exactmatch leads.
The turnover is high with both employees and contractors.
Also if the contractor was sent to collections and settles with collections HA will still say there is a balance left they have to pay HA to sign back up. They changed the name so they could rip people off for 15 more years.