If you have a notation from MalenPay on your credit report and are asking yourself, "Who are they? How do I get rid of them?" you are far from alone.
Every year, millions of Americans find debt collection accounts on their credit reports that they have never seen before. A significant portion of those accounts contain errors that consumers can dispute with the credit bureaus to have them removed.
But before you contact MalenPay or make any payment, you need to understand that the decisions you make over the next few weeks will determine whether this debt ends up staying on your credit report for seven years or if it will be completely deleted.
In this investigation, we are going to treat MalenPay like a criminal case file. We will look at who they are, what patterns have been established, and where consumers have found success in the past.
Who is MalenPay?
MalenPay is not a debt collection agency. Instead, it is a payment portal designed to obscure the fact that the actual debt collection agency is Malen and Associates, P.C., a debt collection law firm in New York.
According to whois.net, the domain malenpay.com was registered in May 2019 and resolves to a third-party payment processing company. This makes it difficult for consumers to research the company demanding money from them.
Business Name: Malen and Associates, P.C.
Address: 123 Frost Street, Suite 203, Westbury, NY 11590
Phone Number: (516) 334-3500
NYC Debt Collection License: 2046078-DCA
Years in Business: Over 35 years (BBB file opened April 1992)
The Debt Collection Agency in Question
Malen and Associates, P.C. has also operated under the names Dennis S. Malen, P.C. and Dennis S. Malen and Associates, P.C. The firm employs approximately five employees and generates an estimated $6.2 million in annual revenue. Their primary clients include Portfolio Recovery Associates, Capital One Bank, Bank of America, Jefferson Capital Systems, Velocity Investments LLC, and CACH, LLC.
These debt buyers purchase charged-off debts from the original creditors for pennies on the dollar and then hire law firms like Malen and Associates to collect the debts. The debt buying industry creates significant paperwork issues that smart consumers can use to their advantage when disputing debts.
The Federal Court Case That Changes Everything
Documented Pattern of Deceptive Filings
There is one thing that you need to know about Malen and Associates, P.C. before we go any further.
In the case Diaz v. Portfolio Recovery Associates LLC et al. in the U.S. District Court for the Eastern District of New York, it was found that Malen violated New York Judiciary Law Section 487 which states, "A person who: 1. Is guilty of any fraud upon the court and 2. Deliberately causes a court to entertain and determine an action under a false allegation of fact essential to the dispositional integrity of the action, is guilty of a felony."
What led the court to this conclusion?
In 2009, Malen filed over 13,000 debt collection complaints. One attorney at the firm signed over 4,300 of those complaints in a single year. The court ruled that this was clear evidence of a pattern of deceptive filings that would not have been possible if each case had received the appropriate review by an attorney.
This is a huge deal. When a federal judge rules that a debt collection law firm has engaged in a pattern of deception, that is not something to be taken lightly. It is one thing for consumers to complain about an agency, but for a federal judge to rule on it is an entirely different story.
Portfolio Recovery Associates settled the case in November 2010. Malen was left alone to absorb the negative ruling.
What the Mass Filings Mean to Your Debt
When a law firm is filing 13,000 lawsuits in a single year and one attorney is signing over 4,300 of them, it becomes extremely difficult to argue that each case received the proper review. In fact, the judge in the case above ruled that it was not possible for that to happen.
What does that mean for you?
If the firm that is collecting your debt has filed so many cases in a year that it is improbable they were properly reviewed, what are the chances that your debt was? We already know that 79 percent of credit reports contain some sort of mistake or serious error according to studies by U.S. PIRGs.
When you couple that with the fact that the law firm collecting your debt has been found by a federal judge to have engaged in mass filings, the odds of your debt containing an error that you can dispute off of your credit report becomes extremely high.
Consumer Complaints Show Systematic Flaws
CFPB and BBB Complaint Data
There have been 57 complaints filed with the CFPB Consumer Complaint Database against Malen and Associates, with 51 of them being related to debt collection. That means 89.5 percent of all complaints against Malen are debt collection complaints.
The Better Business Bureau rates the firm an A- but they are not BBB accredited. Consumer reviews on Birdeye average 2.4 out of 5 stars across 59 reviews.
There is often a disconnect between the official ratings of a debt collection agency and the consumer reviews. Many agencies are able to maintain a technically compliant operation while still managing to aggravate a high percentage of their customers.
The Top Five Complaints
So, what are consumers complaining about? Here are the top five categories of complaints against Malen and Associates:
Improper service of process (sewer service): Consumers state that they never received notifications of lawsuits and only found out that judgments had been entered against them when their wages were being garnished or their bank accounts had been frozen.
Attempts to collect from the wrong person: This includes attempts to freeze bank accounts that are joint accounts or the consumer was only a beneficiary on the account.
Freezing bank accounts without notice: Consumers state that this was one of the primary tactics used to attempt collection before they had a chance to respond to the lawsuit.
Third-party disclosure violations: Court documents were left on doors instead of in a sealed envelope.
Statute of limitations violations: The Diaz case above specifically claimed that the firm had a pattern of filing lawsuits on debts that were past the statute of limitations.
Each one of these categories represents a potential dispute for your debt. When a debt collector places a collection account on your credit report, they have a responsibility to verify that the debt is accurate, that it belongs to you, that it is within the statute of limitations, and that it was properly notated at every step of the collection process.
If they fail to meet any one of those standards, you have the right to dispute the account and have it removed from your report.
Consumer Reviews That Show the Damage
Wrong Person Collections
We found several consumer reviews from people who stated that Malen attempted to collect debts from them that did not belong to them. Here is one example from Corinne M. who had a savings account frozen:
"They put a hold on my savings account. I called the # on the letter and found out they were trying to collect a debt that is not mine. It is my daughters. She is listed as beneficiary on my account. I had to fax them my savings account activity and so far they haven't removed the hold. This is absurd."
Despite faxing over proof that the account belonged to her and not her daughter, the hold remained in place.
Allegations of Improper Legal Process
Here is another example from a consumer who alleged improper legal process among several other issues:
"They obtained a judgment against my girlfriend for a credit card debt that was not hers. They have now garnished nearly $3000 in her wages over the past year and a half. They served a Summons by taping it to the door and not in an envelope. I believe they lied to the Court repeatedly. Please help."
There was another complaint that alleged the firm repeatedly lied to the court, obtained restraining orders against bank accounts based on false information, and filed return of service papers claiming the consumer was served at an address where they did not live. Again, we cannot verify these allegations, but they do mirror many of the complaints associated with the mass filings discussed above.
Why Your Annual Credit Report is Reconnaissance
What You Are Looking For
You are entitled to a free annual credit report from each of the three major credit reporting agencies. Instead of looking at them as a benefit, you should look at them as reconnaissance for your credit report.
When you see MalenPay or Malen and Associates on your report, you should scour every piece of information to make sure it is accurate. Look for inaccurate balances, inaccurate dates of first delinquency, incorrect account numbers, misspelled names, incorrect addresses, and anything else that is not accurate.
Any inaccuracy is a potential dispute. Law firms that are filing over 13,000 lawsuits in a single year cannot possibly keep the information straight in every single case.
Why the Investigation Has to Come First
Investigate Before You Act
Any investigation into the accuracy of the debt has to happen before you have any discussions about payment or settlement. Once you pay a debt, even partially, you may be resetting some of the clocks and validating a debt that may have been otherwise disputable. The status of the debt goes from unpaid to paid, but the negative mark remains on your credit report either way.
That is why credit repair specialists always say investigate before you act. The information gap that typically exists between debt collectors and consumers can be closed once consumers educate themselves and demand that collectors verify their information.
The Lawsuit Question
Understanding the Real Risk
One of the reasons that consumers end up paying debts they do not owe is because they are afraid of a lawsuit. Debt collection lawsuits are rare. They do happen, but compared to the millions of collection attempts every year, lawsuits are only a small percentage. It costs money to file a lawsuit, even for a law firm.
They cannot file a lawsuit against every single consumer they attempt to collect from. They use the threat of a lawsuit to scare you into paying them.
If you understand that the likelihood of a lawsuit is small and that most debt collection lawsuits are decided because consumers fail to show up to court to defend themselves, you can begin to see that knowledge is power in this situation.
Rather than reacting out of fear and making a payment, you can take a step back and develop a strategy.
Credit Repair is a Marathon, Not a Sprint
Why You Should Not Rush to Pay
Collection accounts can stay on your credit report for seven years from the date of first delinquency. Combine that with the amount of time that credit bureaus have to respond to disputes (30-45 days) and you will see that patience can be a virtue. If you rush to pay a debt because you are afraid of the threat of a lawsuit, you may be jeopardizing your long-term credit health for a short-term solution to your fear.
Disputing collection accounts takes time. You have to wait for the credit bureaus to respond. You have to wait to see if the debt collector responds with verification or if they admit they do not have the information and the account is removed. You may have to go through multiple rounds of disputes to get the desired outcome.
This is not a sprint. It is a marathon. The consumers who understand that and can develop a strategy around it are the ones who win in the end.
Why You Need a Professional
The Limits of Self-Advocacy
When consumers attempt to dispute debts on their own, there are several things they may not understand.
They may not understand the specific documentation that the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA) require. They may not understand which inaccuracies are most likely to get a debt removed. They may not understand how to properly escalate a dispute when the initial rounds are not successful.
A credit repair professional is an advocate for consumers because they understand the documentation requirements of the FDCPA and FCRA. They understand which inaccuracies are most likely to result in removal. They understand how to escalate disputes.
Most importantly, they have experience with virtually every debt collection agency in the country, including law firms like Malen and Associates. That expertise translates into results.
What a Professional Advocate Will Do For You
When you work with a professional advocate, you have someone in your corner who understands that it is possible to have a collection account removed if the information is incorrect, erroneous, fraudulent, or cannot be verified in a reasonable amount of time.
You have someone who understands that sometimes, saying nothing is the most powerful thing you can do. Responding to a debt collector's pressure tactic more often than not will weaken your position. You also have someone who is willing to serve as a shield between you and the debt collection agency.
This in itself can prevent many of the landmines that consumers step on when they try to handle collection accounts on their own.
Debt collectors are pros at getting consumers to admit things they do not mean to, make partial payments, or do dozens of other things that can damage your position. A professional advocate prevents that from happening.
The Bottom Line
MalenPay is a payment portal for the debt collection law firm Malen and Associates, P.C. out of New York. They have been found by a federal court to have engaged in a pattern of mass filings, having filed over 13,000 debt collection complaints in a single year.
One attorney signed over 4,300 of those complaints in 12 months. Consumer complaints filed with the CFPB and BBB indicate a pattern of improper service, attempts to collect from the wrong person, and freezing bank accounts without notice. Each one of those issues is a potential dispute for consumers who want to get the debts removed from their credit report.
At FightCollections.com, we specialize in fighting debt collectors through the dispute process and advocating for consumers. Our team understands the weaknesses in debts that are handled by firms like Malen and Associates. We will investigate for you, dispute when necessary, and work to get inaccurate collection accounts removed from your credit report.
Call to Action
If you see MalenPay or Malen and Associates on your credit report, do not contact them directly. Do not make a payment until the account has been thoroughly investigated for inaccuracies. Do not let the threat of a lawsuit intimidate you into making a decision that could damage your long-term credit health.
At FightCollections.com, we specialize in fighting debt collectors through the dispute process and advocating for consumers. Our team understands the weaknesses in debts that are handled by firms like Malen and Associates. We will investigate for you, dispute when necessary, and work to get inaccurate collection accounts removed from your credit report.
Contact us today for a free consultation. Our team of experts will review your credit report, identify potential disputes, and advocate on your behalf to get results.
The collection account on your credit report may contain just the type of inaccuracies needed to have it removed. You will never know unless a professional advocate investigates for you.
