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 terms in loan agreements. The tool aims to protect property owners and non-farming individuals from hidden clauses that can lead to loss of generational wealth.
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 widespread problem. “Many of my clients have lost generational wealth due to hidden predatory terms in loan agreements they didn't fully understand,” she 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 analyzes uploaded loan documents for potentially harmful clauses, excessive interest rates, and unfair penalties that are often buried in legal jargon.
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. Users can upload their loan documents to loan-scan.com, where the AI system immediately scans for known predatory terms and conditions. Users receive a comprehensive report highlighting potential risks, and 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; this tool is very useful for people seeking to secure personal loans without an extremely high interest rate,” Hishaw noted. The tool 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 regarding predatory lending topics and lending suggestions offering better terms than typical predatory lenders.
To learn more about F.A.R.M.S., visit 30000acres.org. Additionally, users can take a free quiz to determine how they rank regarding their current personal debt and estate planning journey and get a 10% discount off drafting their will and power of attorney for less than $200 by visiting generationalfinancialwealth.com and clicking under the estate planning column on the homepage.
