Former SmileDirectClub Customer? Discover Your Potential Refund Now!
NEW YORK — When SmileDirectClub abruptly closed its doors last year, countless customers found themselves stranded without answers. Now, a beacon of hope shines through the uncertainty, as tens of thousands are about to receive some much-deserved relief.
In a groundbreaking move, New York Attorney General Letitia James announced a major victory for consumers: her office has secured $4.8 million, ready to be distributed to over 28,000 individuals who were wrongfully charged after the company’s closure. “Dental care is a hefty expense and SmileDirectClub promised affordable, quality services. Instead, they took thousands from hardworking Americans,” James stated with conviction. “Today, we are making things right and putting money back into the hands of those who were deceived.”
SmileDirectClub, once a titan in the realm of clear dental aligners, filed for Chapter 11 bankruptcy protection in December 2023. Their shocking exit included canceling outstanding orders and ditching their much-touted “Lifetime Smile Guarantee.” Adding to the confusion, they continued to demand payment from “SmilePay” customers, leaving many bewildered and frustrated.
According to James’ announcement, many customers had forked over more than $2,500 for their aligner treatments through the “SmilePay” program, which involved both an upfront fee and subsequent installments.
After the company’s abrupt exit, James’ office received a flood of complaints from New Yorkers still expected to make monthly payments without receiving any services in return. This prompted her office to issue a cease-and-desist letter to SmileDirectClub.
In response, the company directed concerns to HPS Investment Partners, the agent for their secured lenders, as well as to Healthcare Finance Direct, the service provider for SmilePay. They also amended their online FAQ to clarify payment responsibilities, directing customers to HFD for further inquiries.
With the recent settlement, consumers affected should soon see relief—whether that’s in the shape of a refund for their installment payments or a reduction in future payment obligations, as detailed on HFD’s website.
The amount each eligible individual receives will vary based on several factors, including when they started their treatment, the status of their treatment plan, and the outstanding balances on their accounts.
It’s important to note that not all refunds will come as a check. Initially, any compensation will be applied toward outstanding balances, meaning those who were further along in their treatment may still owe reduced payments. Those due a refund exceeding their balance will receive that excess amount back through their bank account, debit card, or credit card on file. If that fails, a check will be mailed instead.
The number of individuals who register for the settlement will also play a key role in determining final payouts. With total compensation capped at $4.8 million, the actual refunds might vary slightly from initial estimates once all requests are accounted for.
While some refunds will occur automatically, others may need to submit a request to HFD directly. The deadline for these requests is March 31, 2025. Eligible consumers should anticipate being contacted via email by HFD, but additional details can be found on the service provider’s official website.
Before its untimely exit, SmileDirectClub had served over 2 million customers since its inception in 2014, promising a revolutionary approach to oral care through affordable, mail-ordered aligners. However, the company never turned a profit, racking up nearly $900 million in debt by the time it filed for bankruptcy in September 2023.
In addition to financial turmoil, dental associations worldwide have warned against “DIY” dentistry—criticizing services that bypass the crucial in-person evaluations by dentists or orthodontists. This scrutiny intensified as customers faced discontinued treatments last year, although several companies continue to offer similar products today.
