Family Agriculture Resource Management Services (F.A.R.M.S.), a national nonprofit, has launched LoanGuard, a free artificial intelligence tool designed to detect predatory lending terms in loan agreements. The tool aims to protect property owners and non-farming individuals from hidden clauses, excessive interest rates, and unfair penalties that often lead to loss of generational wealth.
Jillian Hishaw, Esq., founder and director of F.A.R.M.S., a licensed bankruptcy attorney with over 20 years of experience, stated that many of her clients have lost generational wealth due to hidden predatory terms in loan agreements they did not fully understand. 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.
LoanGuard addresses this growing threat by instantly analyzing uploaded loan documents for potentially harmful clauses. Users can upload their documents to the secure website loan-scan.com, where the AI system scans for numerous known predatory terms and conditions. Users then receive a comprehensive report highlighting potential risks, and if concerning terms are detected, free access to educational resources is provided.
Over its nearly 13-year history, F.A.R.M.S. has successfully 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. Hishaw noted that a recent bankruptcy client had a personal loan with a 249% interest rate, underscoring the tool's usefulness for people seeking to secure personal loans without extremely high interest.
The completely free service reflects F.A.R.M.S.' ongoing dedication to equipping underserved 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. For more information about the nonprofit, visit 30000acres.org. Additionally, users can take a free quiz at generationalfinancialwealth.com to determine how they rank regarding their current personal debt and estate planning journey, and receive a 10% discount off drafting their will and power of attorney for less than $200.
LoanGuard is designed not just for farmers but for the general public, reflecting Hishaw's over ten years of bankruptcy and estate planning experience and the identified need for such a tool.
