Justice for Dental Patients: New York Attorney General Prevails Against SmileDirectClub

After a year of waiting, thousands of SmileDirectClub customers can finally look forward to compensation. New York Attorney General Letitia James and her team have recovered $4.8 million, which will be distributed to more than 28,000 affected consumers. The former publicly traded provider of orthodontic services had, according to James, continued to unlawfully charge fees following its cessation of operations date, engaging in questionable business practices. The company failed to deliver on its promise of affordable dental treatment. With its closure in December 2023, just months after filing for creditor protection, their "Lifetime Smile Guarantee" also ended. Disappointed customers learned that their "SmilePay" payment plan would continue despite the cessation of services—a shock for many. Most consumers used the "SmilePay" program, which consisted of a down payment and additional installment payments that averaged over $2,500. James reported numerous complaints reaching her office from New York. Customers were forced to continue paying even though they were no longer receiving services, ultimately leading to a cease and desist order against SmileDirectClub. Through the settlement, affected customers are assured either partial or full reimbursement of their installment payments, or a reduction in their future payment obligations, according to information on the Healthcare Finance Direct website. The amount of money returned depends on the length of the treatment already received and the outstanding amounts.