Nonprofit Launches Free AI Tool to Combat Predatory Lending Practices

Family Agriculture Resource Management Services (F.A.R.M.S.) has launched LoanGuard, a free artificial intelligence tool designed to protect property owners and individuals from predatory lending practices that threaten communities nationwide. The tool addresses a significant financial burden identified in a recent U.S. Federal Trade Commission report, which indicated that 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., explained the necessity of the tool based on her experience as a licensed bankruptcy attorney with over two decades of expertise in protecting agricultural assets. "Many of my clients have lost generational wealth due to hidden predatory terms in loan agreements they didn't fully understand," Hishaw stated. She noted a recent case involving a bankruptcy client with a personal loan carrying a 249% interest rate, highlighting how the tool can help people secure personal loans without extremely high interest rates.

LoanGuard operates through a simple process where users upload their loan documents to the secure website at https://loan-scan.com. The AI system immediately scans for numerous known predatory terms and conditions, then provides users with a comprehensive report highlighting potential risks. If concerning terms are detected, the system offers free access to educational resources to help users understand the implications before signing potentially devastating agreements.

The completely free service reflects F.A.R.M.S.' ongoing dedication to equipping budget communities with the knowledge they need to combat unfair lending practices. Over its nearly 13-year history, F.A.R.M.S. has successfully saved $25 million in property assets by litigating against predatory lenders and utilizing estate planning methods. This new AI tool represents the organization's proactive approach to prevention rather than costly litigation after damage has occurred.

The tool is available to the general public, not just farmers, through the organization's website. The site includes a current news feed regarding predatory lending topics and lending suggestions for institutions that offer better terms than typical predatory lenders. Hishaw emphasized that "this tool empowers people with the knowledge needed to protect their livelihoods before signing potentially devastating agreements," marking a shift from reactive legal intervention to proactive consumer protection.