Filed Pursuant to Rule 424(b)(3)
                                                              File No. 333-63014


                   AMERICAN BUSINESS FINANCIAL SERVICES, INC.
                                INVESTMENT NOTES

                                 RENEWALS ONLY

                                 RATE SUPPLEMENT

                              PROSPECTUS SUPPLEMENT
                                 DATED 12/11/01

          Rates effective December 28, 2001 through January 31, 2002



            Term                    Rate                  Annual Yield*
        ---------------------------------------------------------------
        3-5 mos.                    5.83%                    6.00%
        6-11 mos.                   7.00%                    7.25%
        12-17 mos.                  8.35%                    8.70%
        18-29 mos.                  9.08%                    9.50%
        30-47 mos.                  8.62%                    9.00%
        48-59 mos.                  8.75%                    9.14%
        60-119 mos.                 9.31%                    9.75%
        120 mos.                    9.54%                   10.00%
        Money Market Note           4.88%                    5.00%
        ---------------------------------------------------------------

    Minimum Investment for Investment Notes and Money Market Notes is $1,000

These rates apply only to the reinvestment of all or a portion of the principal
and/or interest due upon maturity.


  AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI)

An offer can only be made by the Prospectus dated October 16, 2001, delivered in
conjunction with this Rate Supplement dated December 11, 2001. See "Risk
Factors" for a discussion of certain factors which should be considered in
connection with an Investment in the Notes. *The Effective Annual Yield assumes
all interest reinvested daily at the stated rate. The rates for the Investment
Notes are available from December 28, 2001 through January 31, 2002. The
interest rate paid on the Money Market Notes is subject to change from time to
time at the Company's sole discretion provided that such rates shall not be
reduced below 4% per year. Written notice of any decrease in rate will be
provided to holders of such notes at least 14 days prior to the effective date
of the change. No notice will be provided in connection with an increase in the
interest rate paid on such notes. You may obtain an additional copy of the
Prospectus dated October 16, 2001 free of charge from American Business
Financial Services, Inc. by calling (800) 776-4001.

      Investment Notes and Money Market Notes represent obligations of ABFS
         and are not certificates of deposit or insured or guaranteed by
                   the FDIC or any other governmental agency.


            (LOGO) AMERICAN BUSINESS            For information,
                   FINANCIAL SERVICES, INC.   call 1-800-776-4001

BalaPointe Office Centre   111 Presidential Boulevard    Bala Cynwyd, PA 19004
                               www.ABFSonline.com