AG James deal recoups millions for customers of now-bankrupt SmileDirectClub

ALBANY — Dozens of Long Islanders are among the more than 2,500 New Yorkers who will get a piece of a $4.8 million recovery following an investigation of the SmileDirectClub telehealth dental company by Attorney General Letitia James.

The agreement ends the attorney general’s probe into claims that customers were improperly charged for dental services after the company went bankrupt in 2023 and ended operation.

"SmileDirectClub shut its doors for good, but illegally continued to charge New Yorkers for costly dental services," James said in a statement Monday. "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."

The SmileDirectClub had connected customers with dentists for services including teeth straightening for a $250 initial charge followed by 26 monthly payments of about $89. A typical customer would pay more than $2,500, according to the attorney general’s office.

The company announced it closed in December 2023, calling the decision "incredibly difficult," but customers reported to the attorney general’s office that they were still being charged for services. No estimate of how much customers were charged after the company stopped operations was released. That figure will depend on the number of requests for compensation that are still being directed to the company. 

Some of the compensation will be issued automatically in refunds to customers’ charge and bank accounts. Others may contact the service provider for the company, Healthcare Finance Direct, or HFD. HFD states that customers can contact them at 877-874-3877, support@gohfd.com or visit their website at www.gohfd.com.

HFD said more information on refunds and compensation will be announced soon, but no date was set. The site states that the SmileDirectClub "Lifetime Smile Guarantee" no longer exists.

James said that HFD will contact customers by email with more information on automatic refunds and how to submit a request for refunds. James said patients can file complaints involving health care online and through the complaint hotline 800-428-9071.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.