HFD and other interested parties worked with the Office of the New York State Attorney General to develop a compensation plan (“Compensation Plan”) for certain U.S. customers of SDC impacted by SDC closing for business.  The Compensation Plan applies to U.S. customers who, as of December 8, 2023: (i) had an active RIC with SDC; (ii) were not delinquent on any installment payments due under the RIC; and (iii) were likely to still be in treatment for aligner therapy based on available records.  Under the Compensation Plan, such customers may be entitled to a partial or full refund of their installment payments or a reduction of their future payment obligations.  The amount of refunds provided to each customer under the Compensation Plan depends on when the consumer received their initial aligners and how much of the aligner treatment plan the customer had completed when SDC closed for business.   

A portion of the refunds will be issued automatically.  Additional refunds will be issued to consumers who submit an online Refund Request Form by no later than March 11, 2025.  Customers who are eligible for the Compensation Plan will receive an email from HFD containing information on their refunds and a link to the Refund Request Form.  A summary of the refunds to be provided under Compensation Plan is set forth below.    

1. Customers Within First 30 Days of Treatment 

If you received your initial aligners from SDC on or after November 8, 2023, you will automatically be refunded three installment payments ($267).  The automatic refund will be applied to your account with HFD and the outstanding balance on your installment payments will be reduced.  If the automatic refund amount exceeds your outstanding installment payment balance, the excess amount of the automatic refund will be refunded back to your bank account, debit card account, or credit card account on file with HFD.  If a refund made by those means is unsuccessful, a check will be issued to your last known address on file with HFD.   

In addition, if you submit a timely Refund Request Form, you are eligible to receive, subject to the compensation cap described in response to question [6] below, an additional maximum step-up refund of (1) all other installment payments paid; and (2) a cancellation of your remaining RIC balance.  The step-up refund will be applied to your account with HFD and the outstanding balance on your installment payments will be reduced.  If your step-up refund amount exceeds your outstanding balance of installment payments, the excess amount of the step-up refund will be refunded to your bank account, debit card account, or credit card account on file with HFD.  If a refund made by those means is unsuccessful, a check will be issued to your last known address on file with HFD. 

For example, if you received your initial aligners on November 14, 2023, the total amount of installment payments provided for under your RIC was $2,314, and you have already made a total of one installment payment, the outstanding balance on your installment payments will automatically be reduced by $267 from $2,225 down to $1,958 (excluding any accrued interest, late fees, or other charges outlined in the RIC).  In addition, if you timely submit a Refund Request Form, you will be eligible to receive a step-up refund of $89 to the bank account, debit card account, or credit card account on file with HFD, and to have your remaining installment payments canceled, subject to the compensation cap described in response to question [6] below. 

1. Customers In Treatment For Over 30 Days 

If you received your initial aligners from SDC before November 8, 2023, and you were still in aligner treatment as of December 8, 2023, you will automatically be refunded the lesser of one installment payment of $89 or your pro-rata RIC balance.  Your pro-rata RIC balance is calculated by multiplying the percentage of time that remained on your treatment plan as of December 8, 2023 by the total amount owed under your RIC.  The automatic refund will be applied to your account with HFD and the outstanding balance on your installment payments will be reduced.  If the automatic refund amount exceeds your outstanding installment payment balance, the excess amount of the automatic refund will be refunded back to your bank account, debit card account, or credit card account on file with HFD.  If a refund made by those means is unsuccessful, a check will be issued to your last known address on file with HFD.     

In addition, if you submit a timely Refund Request Form, you are eligible to receive a step-up refund, subject to the compensation cap described in response to question [6] below.  The estimated amount of the step-up refund is calculated by (i) multiplying the percentage of time that remained on your treatment plan as of December 8, 2023 by the total amount of installment payments due under your RIC and (ii) subtracting the amount you are automatically refunded.  The step-up refund will be applied to your account with HFD and the outstanding balance on your installment payments will be reduced.  If the  step-up refund amount exceeds your outstanding installment payment balance, the excess amount of the step-up refund will be refunded back to your bank account, debit card account, or credit card account on file with HFD.  If a refund made by those means is unsuccessful, a check will be issued to your last known address on file with HFD.   

For example, if you received your aligners on October 8, 2023, had 4 out of 6 months (66.6%) remaining on your treatment plan as of December 8, 2023, and the total amount of installment payments provided for under your RIC was $2,314, your pro rata RIC balance would be $1,541.12 (excluding any accrued interest, late fees, or other charges outlined in the RIC).  If you had already paid total of two installment payments, the outstanding balance on your installment payments will automatically be reduced by $89 from $2,136 down to $2,047.  In addition, if you timely submit a Refund Request Form, you will be eligible to have your outstanding installment payment balance further reduced by up to $1,452.12 (calculated by subtracting the $89 automatic refund from your $1,541.12 pro rata RIC balance), resulting in an outstanding installment payment balance of $594.88, subject to the compensation cap described in response to question [6] below.   

HFD maintains that you are responsible for continuing to make monthly installment payments on any outstanding balance that remains under your RIC after the automatic and step-up refunds have been applied.