SmileDirectClub customers left hanging after bankruptcy filing
PITTSBURGH (KDKA) -- A popular telehealth company that promised straighter smiles announced it's going under. SmileDirectClub sold clear dental aligners direct to consumers. But a recent bankruptcy filing means some customers are left hanging.
Customer orders that haven't shipped yet have been canceled. The "lifetime smile guarantee" no longer exists.
Jacob Dumont's a North Sider just looking for a straighter smile.
"I was excited about the price and the convenience," Dumont said.
He's one of 2 million customers who gave the SmileDirectClub a shot and started treatment, conveniently using his phone to monitor treatment.
"They reassured me they could get the job done at a reasonable cost and they showed me step by step with the 360 scan," he said.
But SmileDirectClub couldn't stay competitive, eventually filing for bankruptcy in the late fall.
And recently, it tucked a memo into its website. If you click "terms" at the bottom of the main page, it says, "SmileDirectClub has made the incredibly difficult decision to wind down its global operations, effective immediately."
And when it comes to customers asking for refunds: "There will be more information to come once the bankruptcy process determines next steps and additional measures customers can take."
Dumont tells KDKA Investigates he's now out money and only halfway through his teeth treatment.
"I am confused, lost, devastated, very concerned, and I feel like I have been betrayed," he said.
Bankruptcy attorney Chris Rieger explains now that the company's filed for bankruptcy, it's up to the trustee.
"It's up to the trustee to decide if there are any assets to sell. And sometimes there are. But in the overwhelming majority of the cases, there are not. So what happens is, a report of no distribution is filed, which means the creditors oftentimes are kind of left out in the cold."
He says consumers should file a claim on the record so you'll stay in the loop if there's any money at the end, and as for future payments, he said this: "If the company is filing a Chapter 7 or a Chapter 11 to relieve a partial part of its own liability, then you're under no obligation to repay, as far as I'm concerned."
As attorney Rieger mentioned, the next best step for consumers is to file a claim.