How do you answer a competitor's false claims about your license?
Short answer. Invite the client to check your record in the public MHIC license database rather than attacking back. A clean record turns the false claim into credibility, and you can report false statements to the MHIC.
Work it through
You're the contractor. Pick what you'd do, then see how each choice plays out.
Derek Sloan
Competitor who underbids everyone, uses unlicensed subs, skips permits, and badmouths other contractors to steal clients
A potential client tells you that Derek Sloan, a competitor, told them you got in trouble with the MHIC last year and your license was suspended.
This is completely false. Your license has been clean since day one.
- Correct
The MHIC license database is public. Inviting verification turns Derek's lie into your credibility win. When the client sees a clean record, Derek's false claim backfires. You can also file a complaint with the MHIC about Derek's defamatory statements — spreading false information about a competitor's license status may violate advertising regulations. Let your record and your professionalism do the talking.
- Tempting but counterproductive
Even if Derek's issues are public record, mutual badmouthing makes both of you look bad. The client came to you for a renovation, not a contractor soap opera. Verify your own record, let that speak, and move on to discussing their project. If Derek is truly operating with unlicensed subs, report him to the MHIC and let the system work.
All 13 advertising & salespeople questions
- Do you have to give homeowners your MHIC license number?
- What must Maryland home improvement advertising include?
- Does your MHIC number have to be on your work truck?
- Where must your MHIC license number appear?
- Does a contractor's Facebook page need the MHIC number?
- Does a home improvement salesperson need an MHIC license?
- Are you responsible for your salesperson's violations?
- Are you bound by a warranty your salesperson promised?
- How do you answer a competitor's false claims about your license?
- How should a contractor respond to a false online review?
- How do you compete with a far lower bid from a questionable contractor?
- Should you use a competitor's bid to undercut them?
- When is suggesting upgrades good practice and not an upsell?