When SmileDirectClub shut down a year ago, scores of existing customers of the teeth-straightening company were left in limbo
NEW YORK — When SmileDirectClub shut down a year ago, scores of existing customers of the teeth-straightening company were left in limbo. Now, tens of thousands are set to get some relief.
New York Attorney General Letitia James has announced that her office recovered $4.8 million to distribute nationwide to more than 28,000 consumers. SmileDirectClub illegally charged those customers after it ceased operations, James said.
“Dental care is expensive and SmileDirectClub promised customers that they would provide affordable, quality care without the price tag, but instead, they extracted thousands of dollars from hardworking people," James said in a prepared statement Monday. “Today, we are putting money back into people’s pockets who were cheated."
SmileDirectClub, once a publicly traded company known for selling clear dental aligners, shut its doors in December 2023 — just months after filing for Chapter 11 bankruptcy protection. In an abrupt move, the company canceled outstanding orders and announced that its “Lifetime Smile Guarantee” would no longer exist. At the time, SmileDirectClub also said that “SmilePay” customers were expected to continue payments, causing confusion and frustration.
According to James' announcement, the majority of customers paid for their aligner treatments through the “SmilePay” program, which generally totaled more than $2,500 between an up-front payment and following installments.
After the company folded in December 2023, James' office said it received complaints from New York consumers who were told to keep paying monthly installments, despite no longer receiving
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