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 identify predatory lending terms in loan agreements. The tool is intended to help property owners and non-farming individuals avoid 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 20 years of experience, stated, "Many of my clients have lost generational wealth due to hidden predatory terms in loan agreements they didn't fully understand." The launch comes in response to a U.S. Federal Trade Commission report indicating that borrowers are charged nearly $3 billion annually in fees for predatory loans such as payday, car-title, and high-cost installment loans.
LoanGuard operates by allowing users to upload loan documents to loan-scan.com. The AI system scans for known predatory terms and conditions, including excessive interest rates and unfair penalties. Users 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. Hishaw noted that a recent bankruptcy client had a personal loan with a 249% interest rate, underscoring the need for such a tool. "This tool empowers people with the knowledge needed to protect their livelihoods before signing potentially devastating agreements," she said.
The completely free service reflects F.A.R.M.S.' dedication to equipping low-income communities with knowledge to combat unfair lending practices. The site includes a current news feed on predatory lending topics and suggestions for lenders offering better terms. For more information about F.A.R.M.S., visit 30000acres.org. Additionally, a free quiz on personal debt and estate planning is available at generationalfinancialwealth.com, offering a 10% discount on drafting wills and power of attorney.
