Family Agriculture Resource Management Services (F.A.R.M.S.), a national nonprofit, has launched LoanGuard, a free artificial intelligence tool designed to help property owners and individuals identify predatory lending terms in loan agreements. The tool, available at loan-scan.com, scans uploaded documents for harmful clauses, excessive interest rates, and unfair penalties that often remain hidden in legal jargon.
Jillian Hishaw, Esq., founder and director of F.A.R.M.S. and a licensed bankruptcy attorney with over two decades of experience, said the tool addresses a critical need. "Many of my clients have lost generational wealth due to hidden predatory terms in loan agreements they didn't fully understand," Hishaw said. 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 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. "Recently, a bankruptcy client had a personal loan with a 249% interest rate," Hishaw noted. "This tool is very useful for people seeking to secure personal loans without an extremely high interest rate."
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. The new AI tool represents a proactive approach to prevention rather than costly litigation. The site also includes a current news feed regarding predatory lending topics and suggestions for lenders offering better terms than typical predatory lenders.
To learn more about F.A.R.M.S., visit https://30000acres.org. Additionally, users can take a free quiz to determine their ranking regarding personal debt and estate planning, and receive a 10% discount off drafting a will and power of attorney for less than $200 by clicking under the estate planning column on the homepage at https://www.generationalfinancialwealth.com.
The completely free service reflects F.A.R.M.S.' ongoing dedication to equipping budget communities with the knowledge needed to combat unfair lending practices. "This tool empowers people with the knowledge needed to protect their livelihoods before signing potentially devastating agreements," Hishaw said.
