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


           AMERICAN BUSINESS FINANCIAL SERVICES, INC. INVESTMENT NOTES

                                 RATE SUPPLEMENT
                                 RENEWALS ONLY

                              PROSPECTUS SUPPLEMENT
                                 DATED 5/22/02


            Term                    Rate                  Annual Yield*
        ---------------------------------------------------------------
        12-17 mos.                  7.40%                    7.68%
        18-23 mos.                  7.50%                    7.78%
        24-29 mos.                  8.25%                    8.59%
        30-35 mos.                  8.50%                    8.87%
        36-47 mos.                  9.15%                    9.58%
        48-59 mos.                  8.50%                    8.87%
        60-119 mos.                 8.75%                    9.14%
        120 mos.                    9.25%                    9.69%
        ---------------------------------------------------------------

                Minimum Investment for Investment 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 May 22, 2002. 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 June 1, 2002 through July 5, 2002. 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.

See reverse side for additional important information which updates the
Prospectus dated October 16, 2001.

                 Investment 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




    This information updates the prospectus information regarding the topics
                                described below:

         We previously disclosed that the Pennsylvania Attorney General reviewed
certain fees charged to Pennsylvania customers by our subsidiary, Upland
Mortgage. Although we believe that these fees were fair and in compliance with
applicable federal and state laws, we agreed to reimburse borrowers
approximately $221,000 with respect to a particular fee and to reimburse the
Commonwealth of Pennsylvania $50,000 for their costs of investigation and for
future public protection purposes. The reserve which we previously established
is adequate to cover the resolution of this matter. See "Risk Factors- Our
residential lending business is subject to government regulation and licensing
requirements which may hinder our ability to operate profitably and repay the
debt securities" in the prospectus.

         In addition, our lending subsidiaries, including Home American Credit,
Inc. which does business as Upland Mortgage, are involved from time to time in
class action lawsuits, other litigation, claims, investigations by governmental
authorities, and legal proceedings arising out of their lending activities,
including the purported class action entitled, Calvin Hale v. Home American
Credit, Inc., d/b/a Upland Mortgage, filed on behalf of borrowers in several
states alleging that the charging of, and the failure to properly disclose the
nature of, a document preparation fee were improper under applicable state law.
Due to our current expectation regarding the ultimate resolution of these
actions, management believes that the liabilities resulting from these actions
will not have a material adverse effect on the consolidated financial position
or results of our operations. However, due to the inherent uncertainty in
litigation and since the ultimate resolutions of these proceedings are
influenced by factors outside of our control, it is possible that our estimated
liability under these proceedings may change or that actual results will differ
from our estimates.