Family Agriculture Resource Management Services (F.A.R.M.S.), a national nonprofit, has launched LoanGuard, a free AI-powered tool designed to protect property owners and individuals from predatory lending practices. The tool, available at loan-scan.com, instantly analyzes loan documents for harmful clauses, excessive interest rates, and unfair penalties that often go unnoticed by borrowers.
According to a 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. Jillian Hishaw, Esq., founder and director of F.A.R.M.S. and a licensed bankruptcy attorney with over 20 years of experience, noted that many clients have lost generational wealth due to hidden predatory terms in loan agreements they did not fully understand.
LoanGuard operates through a simple process: users upload loan documents to the secure website, the AI scans for known predatory terms, and users receive a comprehensive report highlighting potential risks. If concerning terms are detected, users gain free access to educational resources. Hishaw cited a recent case where a bankruptcy client had a personal loan with a 249% interest rate, emphasizing the tool's usefulness for people seeking to secure loans without extremely high interest.
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 tool represents a proactive approach to prevention rather than costly litigation. The service is completely free, reflecting the organization's dedication to equipping low-income communities with knowledge to combat unfair lending practices. The website also 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, users can take a free quiz on generationalfinancialwealth.com to assess their personal debt and estate planning journey, with a 10% discount on drafting wills and powers of attorney for under $200.
