Family Agriculture Resource Management Services (F.A.R.M.S.), a national nonprofit, has announced the launch of LoanGuard, a free artificial intelligence tool designed to detect predatory lending practices in loan agreements. The tool is available at loan-scan.com and targets a wide audience, including property owners and non-farming individuals, who may be vulnerable to exploitative loan terms.
Jillian Hishaw, Esq., founder and director of F.A.R.M.S., a licensed bankruptcy attorney with over two decades of experience in agricultural asset protection, 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 issue by instantly analyzing loan documents for potentially harmful clauses, excessive interest rates, and unfair penalties that often remain buried in legal jargon. Users can upload their loan documents to the secure website, and the AI system immediately 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.
Hishaw noted a recent case where a bankruptcy client had a personal loan with a 249% interest rate, emphasizing the tool's utility for people seeking to secure loans without excessively high interest. The completely free service reflects F.A.R.M.S.'s dedication to equipping budget communities with knowledge to combat unfair lending practices. The site also includes a current news feed on predatory lending topics and lending suggestions offering better terms than typical predatory lenders.
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. The nonprofit also offers additional resources at 30000acres.org and a free quiz at generationalfinancialwealth.com to help individuals assess their personal debt and estate planning journey.
