The BEP thing is for severely damaged currency. For minor damage, just send them to the bank. Trouble is, you're over here, and American banks are kind of far away. American banks can just replace them with new notes as a normal part of their operation, just as Malaysian banks can do with RM.

The reason forex counters don't want to accept them is because there's no easy way for them to get the notes replaced. And they cannot pass it on to other customers, who wouldn't want them either.

Option 1: keep trying money changers until you find one that will accept them. Depends on the damage. If torn some may accept. If torn with part of the edge missing, probably not.

Option 2: wait till a friend/relative takes a trip to the US of A, and ask them to spend it there.