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 individuals from unfair lending practices that have stripped generational wealth from communities, particularly among low-income and rural populations.
Jillian Hishaw, Esq., founder and director of F.A.R.M.S. and a licensed bankruptcy attorney with over two decades of experience in agricultural asset protection, stated, "Many of my clients have lost generational wealth due to hidden predatory terms in loan agreements they didn't 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 scanning loan documents for potentially harmful clauses, excessive interest rates, and unfair penalties that are often buried in legal jargon. Users can upload their loan documents to the secure website loan-scan.com, where the AI system immediately checks for known predatory terms. Users then receive a comprehensive report highlighting potential risks, and if concerning terms are detected, they gain free access to educational resources.
Over its nearly 13-year history, F.A.R.M.S. has saved $25 million in property assets by litigating against predatory lenders and using estate planning methods. This new AI tool represents a proactive approach to prevention rather than costly litigation. Hishaw noted, "Recently, a bankruptcy client had a personal loan with a 249% interest rate. This tool is very useful for people seeking to secure personal loans without an extremely high interest rate. It empowers people with the knowledge needed to protect their livelihoods before signing potentially devastating agreements."
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 on predatory lending topics and suggestions for lenders offering better terms than typical predatory lenders. For more information about the nonprofit, visit 30000acres.org. Additionally, users can take a free quiz to assess their personal debt and estate planning journey at generationalfinancialwealth.com, and receive a 10% discount on drafting a will and power of attorney for under $200.
