Family Agriculture Resource Management Services (F.A.R.M.S.) has launched LoanGuard, a free artificial intelligence tool designed to protect property owners and non-farming individuals from predatory lending practices. The tool addresses a significant financial threat, with a recent U.S. Federal Trade Commission report indicating 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 the secure website https://loan-scan.com. The AI system immediately scans for numerous known predatory terms and conditions, including potentially harmful clauses, excessive interest rates, and unfair penalties that often remain buried in legal jargon. Users receive a comprehensive report highlighting potential risks, and if concerning terms are detected, they are provided with free access to educational resources.
Jillian Hishaw, Esq., Founder and Director of F.A.R.M.S., explains the tool's necessity, noting that many clients have lost generational wealth due to hidden predatory terms in loan agreements they didn't fully understand. Hishaw, a licensed bankruptcy attorney with over two decades of expertise in protecting agricultural assets, cited a recent bankruptcy client who 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," Hishaw stated. "This tool empowers people with the knowledge needed to protect their livelihoods before signing potentially devastating agreements."
The launch represents a strategic shift for F.A.R.M.S. toward prevention rather than costly litigation. Over its nearly 13-year history, the national non-profit has successfully saved $25 million in property assets by litigating against predatory lenders and utilizing estate planning methods. The completely free service reflects the organization's ongoing dedication to equipping budget communities with the knowledge they need to combat unfair lending practices.
The tool's website includes a current news feed regarding predatory lending topics and suggestions for lenders who offer better terms than typical predatory lenders. While developed by an organization with deep roots in agricultural asset protection, LoanGuard is designed for the general public, not just farmers. The service aims to provide a critical layer of defense in an environment where complex legal documents can obscure financially devastating terms, offering a proactive solution to a widespread economic challenge affecting communities nationwide.
