Family Agriculture Resource Management Services (F.A.R.M.S.), a national nonprofit, has launched LoanGuard, a free artificial intelligence tool designed to identify predatory lending practices in loan agreements. The tool, available at loan-scan.com, allows users to upload loan documents for immediate analysis, flagging potentially harmful clauses, excessive interest rates, and unfair penalties that are often buried in legal jargon.
According to a recent U.S. Federal Trade Commission report, borrowers are charged nearly $3 billion annually in fees for predatory loans such as payday, car-title, and high-cost installment loans. Jillian Hishaw, Esq., founder and director of F.A.R.M.S., noted that many clients have lost generational wealth due to hidden predatory terms in loan agreements they did not fully understand. Hishaw, a licensed bankruptcy attorney with over two decades of experience in protecting agricultural assets, emphasized that LoanGuard empowers people with the knowledge needed to protect their livelihoods before signing potentially devastating agreements.
Over its nearly 13-year history, F.A.R.M.S. has saved $25 million in property assets by litigating against predatory lenders and utilizing estate planning methods. This new AI tool represents the organization's proactive approach to prevention rather than costly litigation. LoanGuard operates through a simple process: users upload their loan documents to the secure website, the AI system immediately scans for numerous known predatory terms and conditions, and users receive a comprehensive report highlighting potential risks. If concerning terms are detected, free access to educational resources is provided.
Hishaw cited a recent example: a bankruptcy client had a personal loan with a 249% interest rate. She noted that the tool is very useful for people seeking to secure personal loans without extremely high interest rates. The completely free service reflects F.A.R.M.S.' ongoing dedication to equipping low-income communities with the knowledge to combat unfair lending practices. The site includes a current news feed regarding predatory lending topics and lending suggestions that offer better terms than typical predatory lenders.
To learn more about F.A.R.M.S., visit 30000acres.org. Additionally, a free quiz to determine how individuals rank regarding their current personal debt and estate planning journey is available at generationalfinancialwealth.com, offering a 10% discount off drafting a will and power of attorney for less than $200.
The launch of LoanGuard marks a significant step in consumer protection, addressing a critical need for accessible tools to detect predatory lending practices that disproportionately affect vulnerable populations.
