UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB


(Mark One)
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
1934 For the quarterly period ended: September 30, 2002

[ ]  Transition  report  under  Section 13 or 15(d) of the  Exchange Act For the
transition period from ____________ to ____________


                         Commission File Number: 0-14653

                       Renaissance Acceptance Group, Inc.
        (Exact name of small business issuer as specified in its charter)



          Delaware                                   74-2119162
(State or other  jurisdiction of                   (IRS Employer
 incorporation or organization)                  Identification No.)

                         1349 Empire Central, 13th Floor
                              Dallas, Texas, 75247
                    (Address of principal executive offices)
                                 (214) 231-7624
                           (Issuer's telephone number)


Check whether the  registrant  filed all  documents  and reports  required to be
filed by Section 12, 13, or 15(d) of the Exchange Act after the  distribution of
securities under a plan confirmed by court. Yes [X] No [ ]

 Number of shares outstanding as of: November 13, 2002: Common Stock: 4,956,436

Transitional Small Business Disclosure Format (check one): Yes [ ] No [ X ]


<PAGE>




                       RENAISSANCE ACCEPTANCE GROUP, INC.
                                      INDEX

                                                                        Page
                                                                        -----

     Part I - Financial Information

         Item 1. Financial Statements                                     2

         Item 2. Management's Discussion and Analysis of
         Financial Condition and Results of Operations                    7

         Item 3. Controls and Procedures                                 15


     Part II - Other Information

         Item 6. Exhibits and Reports on Form 8-K                        15






                                       1
<PAGE>



ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>


                       RENAISSANCE ACCEPTANCE GROUP, INC.
                           CONSOLIDATED BALANCE SHEETS



                                                                                    SEPTEMBER 30, 2002    DECEMBER 31, 2001

                                                                                         (Unaudited)
     <S>                                                                                <C>               <C>

     ASSETS

     Cash and cash equivalents-unrestricted                                             $     71,349      $   404,496
     Cash and cash equivalents-restricted                                                    201,088          192,145
     Accounts receivable and prepaid expenses                                                273,515          671,090
     Loans held for sale                                                                   5,641,821       12,743,053
     Loans held for investment, net of reserves of $13,036 and $104,367                      267,932          466,667
     Real estate held for sale                                                               192,894          338,057
     Property and equipment, net of accumulated depreciation of $499,904 and
     $293,726                                                                                271,720          478,309
     Other assets                                                                             25,029           61,602
                                                                                    ----------------  ---------------
                   Total assets                                                         $  6,945,348      $15,355,419
                                                                                    ================  ===============

     LIABILITIES AND SHAREHOLDERS' DEFICIT

     Warehouse lines of credit                                                          $  5,514,548      $12,614,968
     Accounts payable, accrued liabilities and short term debt                             1,349,488        1,170,482
     Subordinate debt, net of discount                                                     3,485,181        3,476,852
                                                                                    ----------------  ---------------
                   Total liabilities                                                     10,349,217        17,262,302
                                                                                    ----------------  ---------------




     Preferred stock, 5,000,000 shares authorized, par value of $0.001:
     Series A: 5,000 shares authorized; redeemable, 8% cumulative, convertible;
     2,157.50 shares issued and outstanding                                               2,157,500         2,157,500
     Common stock, 95,000,000 shares authorized, par value of $0.001,
     4,956,436 and 5,000,000 shares issued and outstanding                                    4,956             5,000
     Treasury Stock, 50,000 shares                                                          (13,000)           -
     Additional paid-in capital                                                             417,129           417,085
     Accumulated deficit                                                                 (5,970,454)       (4,486,468)
                                                                                    ----------------  ----------------
                   Total shareholders' deficit                                           (3,403,869)       (1,906,883)
                                                                                    ----------------  ----------------
                   Total liabilities and shareholders' deficit                          $ 6,945,348       $ 15,355,419
                                                                                    ================  ================


</TABLE>

                                       2


       See accompanying notes to these consolidated financial statements


<PAGE>

<TABLE>
<CAPTION>

                       RENAISSANCE ACCEPTANCE GROUP, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS


                                                    FOR THE THREE MONTHS ENDED                  FOR THE NINE MONTHS ENDED
                                                           SEPTEMBER 30,                              SEPTEMBER 30,
                                            ---------------------------------------    -----------------------------------------
                                                 2002                  2001                 2002                   2001
                                            ---------------       -----------------    ----------------        -----------------
                                             (Unaudited)             (Unaudited)         (Unaudited)             (Unaudited)
     <S>                                        <C>                     <C>               <C>                   <C>

     NET REVENUES:
     Sales of residential real estate           $   52,490              $   25,870        $     116,840          $    4,590,683
     Cost of residential real estate              (56,915)                (47,744)            (133,570)             (3,922,500)
     sold
     Gain on sales of loans                        623,671                 998,483           2,067,464                2,026,176
     AFA education and services fees               345,911                 400,702           1,519,917                  489,130
     Real estate commission                        193,317                 181,979             729,598                  190,444
     Title company fees and net                     91,570                  80,245             247,787                   93,712
     premiums
     Other income                                   76,699                  51,893             311,246                  363,249
                                            ---------------       -----------------    ----------------         ----------------
     Total net revenues                         $1,326,743              $1,691,428        $  4,859,282           $    3,830,894

     OPERATING EXPENSES:
     Personnel and related expense                 839,313               1,570,954           3,448,947                3,328,891
     General and administrative                    446,155                 563,927           1,539,691                1,374,057
     Advertising expense                           239,170                 231,170             796,670                  349,342
     Depreciation and amortization                  68,618                  56,463             212,048                  150,383
     Acquisition expense                                 -                       -                   -                  145,000
                                            ---------------       -----------------    ----------------         ----------------
     Total operating expenses                    1,593,256               2,422,514           5,997,356                5,347,673
                                            ---------------       -----------------    ----------------         ----------------

     Loss from operations                        (266,513)               (731,086)         (1,138,074)              (1,516,779)
                                            ---------------       -----------------    ----------------         ----------------

     OTHER EXPENSE -
     Interest expense, net of interest
     income                                      (113,818)               (112,153)           (345,912)               (454,610)
                                            ---------------       -----------------    ----------------         ----------------

     Net loss                                   $(380,331)              $(843,239)        $(1,483,986)           $ (1,971,389)
                                            ===============       =================    ================         ================

     Basic and diluted loss per share           $   (0.08)              $   (0.17)        $     (0.30)           $      (0.41)
     Basic and  diluted  weighted  average
     shares outstanding                          4,963,211               4,993,444           4,976,432               4,773,000

</TABLE>


                                       3

       See accompanying notes to these consolidated financial statements

<PAGE>

<TABLE>
<CAPTION>

                       RENAISSANCE ACCEPTANCE GROUP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                             FOR THE NINE MONTHS ENDED
                                                                                                   SEPTEMBER 30,
                                                                                     ----------------- --- ----------------
                                                                                          2002                  2001
                                                                                     -----------------     ----------------
                                                                                      (Unaudited)            (Unaudited)
<S>                                                                                     <C>                 <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss                                                                            $(1,483,986)       $   (1,971,389)
     Adjustments to reconcile net loss to net cash used in operating
     activities:
     Depreciation and amortization expense                                                    212,048              150,383
     Amortization of subordinated debt discount                                                 8,329                4,629
     Common stock issued for compensation                                                      -                     9,472
     Net changes in assets and liabilities:
          Accounts receivable, prepaid expenses and other assets                              434,149             (35,641)
          Loans held for sale and warehouse lines payable, net                                    812            (772,953)
          Real estate held for sale                                                           145,163              691,643
          Residences contracted for sale                                                       -                 1,257,156

          Deferred gain                                                                        -                 (150,498)
          Accounts payable and accrued liabilities                                           (48,418)            (184,774)
                                                                                     -----------------     ----------------
     Net cash used in operating activities                                                  (731,903)           (1,001,972)

CASH FLOWS FROM INVESTING ACTIVITIES:
     (Increase) / decrease in restricted cash                                                 (8,943)             10,000
     Purchase of property and equipment                                                       (5,460)            (283,857)
     Loans held for investment, net of collections                                            110,757               34,897
                                                                                     -----------------     ----------------
     Net cash provided in investing activities                                                 96,354            (238,960)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Purchase of treasury Stock                                                              (13,000)               -
     Issuance of Preferred Stock Series A                                                      -                1,636,500
     Net proceeds for short term borrowings                                                   227,424               -
     Sales of loans held for investment                                                        87,978               -
                                                                                     -----------------     ----------------
     Net cash provided in financing activities                                                302,402           1,636,500

NET CHANGE IN CASH AND CASH EQUIVALENTS                                                     (333,147)             395,568

CASH AND CASH EQUIVALENTS, beginning of period                                                404,496             500,034
                                                                                     -----------------     ----------------

CASH AND CASH EQUIVALENTS, end of period                                                 $     71,349       $     895,602
                                                                                     =================     ================



SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Conversion of subordinated debt to preferred stock                                       $      -           $     500,000
Interest paid, including warehouse lines of credit                                       $    240,625       $     412,305
Warehouse lines settled for contracts for deed and mortgage loans                        $      -           $   1,100,000

</TABLE>

                                       4

       See accompanying notes to these consolidated financial statements
<PAGE>


                       RENAISSANCE ACCEPTANCE GROUP, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.   NATURE OF BUSINESS, ORGANIZATION AND BASIS OF PREPARATION AND PRESENTATION
     ---------------------------------------------------------------------------

     Renaissance  Acceptance  Group,  Inc. (the "Company")  operates in the real
     estate and mortgage banking industries through its subsidiaries, Remodelers
     Holdings,  Inc. ("RHI"),  Remodelers Acceptance Corporation ("RAC"), United
     Lending Partners,  LP ("ULP"),  Texas Real Estate Systems, LLC ("TRES") and
     Renaissance  Title LLC ("RT").  RAC  incorporated in Nevada in October 1998
     and began  operations  in the real estate  business in the first quarter of
     2000. RAC acquired a 99% limited  partnership  ownership interest in ULP; a
     Texas limited  partnership  engaged in the mortgage  business,  in December
     2000.

     In April 2001 the  shareholders  of RAC (in a stock  exchange  transaction)
     exchanged  their 100%  ownership  interest in RAC for 100% of the ownership
     interest  in  the  newly  formed  RHI  (a  wholly-owned  subsidiary  of the
     Company). As a result of this stock exchange,  RHI became the 100% owner of
     RAC.  On April 30,  2001,  RHI became the 99%  limited  partner of ULP as a
     result of an  upstream  dividend  from RAC of the 99%  limited  partnership
     interest owned by RAC. The accompanying  financial statements are presented
     as if RHI had  existed  as the  holding  company  of RAC  for  all  periods
     presented.

     Pursuant to an Agreement  and Plan of Merger,  dated as of July 2, 2001, by
     and among Cardiac Control Systems,  Inc., RHI, Nineteenth  Acquisition Sub,
     Inc.  and Kersey,  Scillia,  Forster and Brooks,  Inc.  (the  "Agreement"),
     approximately 94.6 percent of the Company's common stock shares were issued
     to the  stockholders  of RHI in  connection  with  the  reverse  merger  of
     Nineteenth Acquisition Sub, Inc. ("Nineteenth"),  a wholly-owned subsidiary
     of the  registrant  created  to effect the  merger,  with and into RHI (the
     "Merger").

     In  accordance  with the terms of the Merger,  $170,000 in cash was paid by
     RHI and 250,000 shares of the registrant's  common stock were issued to the
     liquidating  trust and to certain of its  creditors  and  stockholders.  In
     addition, 20,000 shares of the registrant's common stock were issued to the
     liquidating trust to be sold and applied to RHI's  administrative costs and
     fees related to the Merger.  The remaining  4,730,000 initial shares of the
     Company's common stock were issued to the holders of common stock of RHI on
     a pro rata basis  according to their  ownership of the common stock of RHI.
     All  share  and per share  information  has been  revised  to  reflect  the
     exchange ratio in the reverse merger on a retroactive basis.

     Following the Plan  confirmation  and Merger,  the Company became a holding
     company  and RHI  became  its  wholly  owned  subsidiary.  The  Company  is
     authorized to issue 95,000,000 shares of its common stock, par value $0.001
     per share, of which 4,956,436  shares are  outstanding.  Additionally,  the
     Company is authorized to issue 5,000,000 shares of its preferred stock, par
     value $0.001 per share,  of which  2,157.5  shares of Series A  Convertible
     Preferred Stock are outstanding.  The former  stockholders of RHI currently
     own   4,736,436   shares  of  the   Company's   outstanding   common  stock
     (approximately 95.6 percent) and all of the Company's outstanding preferred
     stock.

     Beginning  in May 2001,  the  Company,  through  RAC,  operates in the real
     estate  business  as  Assistance  for  America  ("AFA").  AFA  is  designed
     primarily to help renters become  homeowners by facilitating  financing and
     down payment  assistance.  AFA earns fees associated with their  customer's
     purchase of a home.  Prior to the AFA program,  the Company  purchased  and
     sold  single-family  real  estate.  AFA was  created,  as a solution to the
     increasing capital needs associated with the purchase of real estate.

     The  Company   operates  in  the  mortgage  banking  business  through  its
     subsidiary  ULP. ULP originates  loans from various  sources and then sells
     these loans to third party institutional  investors  utilizing  conforming,
     non-conforming, and U.S. government agency lending programs.



     Reclassifications
     Certain  amounts have been  reclassified  to conform to the current  period
     presentation.

                                       5
<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.


     2.   UNAUDITED INFORMATION
          ---------------------
     The September 30, 2001 and 2002 financial  statements have been prepared by
     the Company  without audit.  According to the rules and  regulations of the
     Securities  and  Exchange  Commission,  certain  information  and  footnote
     disclosures   normally  included  in  financial   statements   prepared  in
     accordance  with  generally  accepted   accounting   principles  have  been
     condensed  or  omitted.   However,  in  the  opinion  of  management,   all
     adjustments (consisting of only normal recurring adjustments) necessary for
     a fair  presentation  of the  Company's  financial  position and results of
     operations  for the  periods  presented  have been  made.  The  results  of
     operations  for the three month and nine month periods ended  September 30,
     2001,  and 2002  are not  necessarily  indicative  of  those  that  will be
     obtained for the entire fiscal year.

     These financial  statements should be read in conjunction with the December
     31, 2001 financial statements of the Company contained in Form 10-KSB filed
     with the Securities and Exchange Commission.


     3.  BUSINESS SEGMENT INFORMATION
         ----------------------------
     The Company  operates in two segments:  real estate  (including Title Agent
     operations)  and  mortgage   banking.   Segment   operations  are  measured
     consistent  with  the  accounting   policies  used  in  these  consolidated
     financial  statements.  The following provides information on the Company's
     segments for the three months and nine months ended  September 30, 2002 and
     2001.

<TABLE>
<CAPTION>


     Quarter Ended September 30, 2002

                                                            Real                  Mortgage
                                                           Estate                  Banking                Total
                                                 -----------------------    -----------------    -------------------
          <S>                                           <C>                   <C>                     <C>

          Net revenues from external customers          $  703,072            $    623,671            $  1,326,743

          Net loss                                      $ (340,635)           $    (39,696)           $   (380,331)

          Identifiable assets                           $  388,570            $  6,556,778            $  6,945,348



<CAPTION>

     Quarter Ended September 30, 2001
                                                            Real                  Mortgage
                                                           Estate                  Banking                Total
                                                 -----------------------    -----------------    -------------------
          <S>                                           <C>                      <C>                   <C>

          Net revenues from external customers          $  692,945               $ 998,483             $1,691,428

          Net income (loss)                             $(1,019,023)             $ 175,784             $  (843,239)

          Identifiable assets                           $   494,800              $18,184,316           $ 18,679,116


</TABLE>

                                       6

<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.

<TABLE>
<CAPTION>


     Nine Months Ended September 30, 2002

                                                            Real                  Mortgage
                                                           Estate                  Banking                Total
                                                 -----------------------    -----------------    -------------------
          <S>                                           <C>                   <C>                     <C>

          Net revenues from external customers          $ 2,791,818           $    2,067,464          $  4,859,282

          Net loss                                      $(1,253,800)          $    (230,186)          $ (1,483,986)

          Identifiable assets                           $   388,570           $    6,556,778          $  6,945,348


<CAPTION>

     Nine Months Ended September 30, 2001
                                                            Real                  Mortgage
                                                           Estate                  Banking                Total
                                                 -----------------------    -----------------    -------------------
          <S>                                           <C>                     <C>                    <C>

          Net revenues from external customers          $ 1,804,718             $ 2,026,176            $ 3,830,894

          Net income (loss)                             $(2,296,662)            $   325,273            $(1,971,389)

          Identifiable assets                           $   494,800             $18,184,316            $18,679,116


</TABLE>


     ITEM 2.  MANAGEMENT'S  DISCUSSION  AND ANALYSIS OF FINANCIAL  CONDITION AND
     RESULTS OF OPERATION

     You  should  read  the  following  discussion  and  analysis  of  financial
     condition  and results of  operations  in  conjunction  with the  Company's
     consolidated  financial  statements  presented  in  Part I - Item 1 of this
     report.  This discussion and analysis contains  forward-looking  statements
     within the meaning of the Private Securities Litigation Reform Act of 1995.
     Forward-looking  statements are statements  that are not historical  facts.
     Broadly speaking, forward-looking statements include:

          o    projections  of the  Company's  revenues,  income,  earnings  per
               share, capital expenditures, capital structure or other financial
               items;

          o    descriptions of strategic initiatives, plans or objectives of the
               Company's  management for future  operations,  including  pending
               acquisitions;

          o    descriptions of products, services and industry sectors;

          o    forecasts of future economic performance; and

          o    descriptions of assumptions  underlying or relating to any of the
               foregoing

     You can identify these and other  forward-looking  statements by the use of
     words such as "becoming," "may," "will," "should," "predicts," "potential,"
     "continue,"  "anticipates,"  "believes,"  "estimates,"  "seeks," "expects,"
     "plans,"   "intends,"  or  the  negative  of  such  terms,   or  comparable
     terminology.  Although the Company believes that the expectations reflected
     in these forward-looking  statements are reasonable,  and the Company based

                                       7
<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.


     these  expectations on its beliefs,  as well as its assumptions,  that such
     expectations  may prove to be incorrect.  The Company's  actual  results of
     operations and financial  performance could differ significantly from those
     expressed in or implied by its management's forward-looking statements. For
     information  with  respect to factors  that could cause  actual  results to
     differ from the expectations stated in the forward-looking  statements, see
     the text under the caption  "Risk  Factors"  included in the Form 8-K filed
     with the  Securities  and Exchange  Commission on July 9, 2001. The Company
     urges  investors to consider all of these  factors  carefully in evaluating
     the forward-looking  statements  contained in this discussion and analysis.
     All subsequent written or oral forward-looking  statements  attributable to
     the  Company  or  persons  acting on the  Company's  behalf  are  expressly
     qualified  in  their   entirety  by  these   cautionary   statements.   The
     forward-looking  statements included in this filing are made only as of the
     date of this  filing.  The  Company  does not  intend,  and  undertakes  no
     obligation, to update these forward-looking statements.

     Overview

     Renaissance  Acceptance  Group,  Inc. ("the Company")  operates in the real
     estate and mortgage banking industries through its subsidiaries, Remodelers
     Holdings,  Inc. ("RHI"),  Remodelers Acceptance  Corporation ("RAC"), Texas
     Real Estate Systems LLC ("TRES"),  United Lending Partners,  LP ("ULP") and
     Renaissance Title LLC ("RT").

     On May 24, 2001, Cardiac Control Systems,  Inc ("Cardiac"),  predecessor to
     the Company,  obtained the approval of the United States  Bankruptcy Court,
     Middle District of Florida,  Jacksonville Division for its confirmed Second
     Amended  Chapter 11 Plan of  Reorganization  (the "Plan").  Pursuant to the
     Plan and to an Agreement  and Plan of Merger,  dated as of July 2, 2001, by
     and among  Cardiac,  RHI,  Nineteenth  Acquisition  Sub,  Inc.  and Kersey,
     Scillia,  Forster and Brooks,  Inc. (the  "Agreement"),  approximately 94.6
     percent  of  the   Company's   common  stock  shares  were  issued  to  the
     stockholders  of RHI in  connection  with the reverse  merger of Nineteenth
     Acquisition Sub, Inc. ("Nineteenth"),  a wholly-owned subsidiary of Cardiac
     created  to  effect  the  merger,  with and into RHI (the  "Merger").  Upon
     execution  of  the  Merger,  Cardiac's  name  was  changed  to  Renaissance
     Acceptance Group, Inc. (the "Company"). Cardiac had virtually no operations
     during  the  period  January 1, 2000,  through  the  effective  date of the
     merger,  July 2, 2001, and accordingly the following  business  description
     relates to that of RHI and its subsidiaries.


     The  Company  was   incorporated   in  Delaware  in  1980.   The  Company's
     headquarters  are  located  in Dallas,  Texas.  Through  subsidiaries,  the
     Company operates in two primary segments- real estate and mortgage banking.
     Through RAC, the Company began real estate  operations in the first quarter
     of 2000 and through its  acquisition  in December  2000 of ULP, an existing
     mortgage company, entered the mortgage banking business.

     Real Estate Business- The "AFA Business"

     The Company's  primary  strategy is to enable and encourage home ownership.
     Today,  many families and  individuals  encounter  difficulties  purchasing
     homes due a variety of reasons  including:  a lack of initial cash reserves
     for  down  payments  and  closing  costs,  poor  historical  credit  due to
     situational  circumstances  and an overall lack of customer  service by the
     realty and financial service industries.  Funds that are typically required
     to  purchase a  $100,000  home,  assuming  financing  through a  government
     sponsor program, are approximately  $6,000 to $8,000.  Although many people
     can afford the current $850 to $1,000  monthly  payment  required on a home
     this size, they do not have, nor will have, the amount of money required to
     purchase  and  finance  this  home.   Additionally,   limited   credit  and
     self-perceived  poor credit are also  significant  factors  that deter home
     ownership.  Many people are not sure if they can be approved for a home and
     mortgage,  and many  have  false  beliefs  as to the  quality  of their own
     credit.  Finally,  poor  service  to  these  customers  needing  additional
     support, education and guidance to purchase and finance a home, priced less
     than  the  median  home  price in most  areas,  contributes  greatly  to an
     underserved market.

     The Company  believes its high  customer  service  level  combined with its
     knowledge  of  financing  programs  and down  payment  assistance  fills an
     existing  void  in the  conventional  home  ownership  arena.  The  Company
     currently services the Dallas-Ft. Worth, Houston and San Antonio markets in
     Texas.

                                       8
<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.


     Through May 2001,  prior to the AFA Business,  the Company was primarily in
     the  business of  purchasing  homes,  which the  Company  believed to be an
     attractive market,  refurbishing the homes and then marketing the homes and
     selling  them.  This  business  was  extremely  capital  intensive as homes
     purchased  had to be  carried  for both the time  needed to  refurbish  the
     house,  as well as the time needed to market the house.  In  addition,  the
     mortgage  loans  resulting from the sale of these  refurbished  houses were
     becoming less  marketable,  as many investors  increased their scrutiny and
     requirements  of how many times a property  could  change  legal  ownership
     during the previous year. As the  combination of these  obstacles  mounted,
     the  Company  changed  its  focus in the real  estate  business  to the AFA
     business.  The  AFA  business  is a real  estate  marketing  education  and
     consulting business.  Under the AFA business,  the Company earns a fee paid
     at the closing of the home sale,  and the  Company  rarely  takes  property
     ownership or expends money to purchase real estate.


     Mortgage Banking Business

     Although  the Company  began in the mortgage  banking  business in December
     2000 through its acquisition of United Lending Partners,  LP (ULP), ULP had
     been in  existence  for two years.  During the third  quarter of 2001,  the
     Company  made a  conscious  effort to exit the  wholesale  business  due to
     increased  risks in this business line. As such, ULP was  transformed  from
     being a wholesale lender to a retail lender.

     In addition, due to the steady decline in mortgage rates, the Company began
     a FHA streamline refinance group in September 2002 to attempt to capitalize
     on the lower mortgage interest rates.


     Ancillary Businesses

     Texas Real Estate  Systems,  LLC (TRES) is a licensed  real estate  broker,
     providing  services  mainly  to AFA.  TRES  earns its  revenues,  which are
     typically 3% of a home's sales price,  as an  intermediary  between AFA and
     its customer in each transaction.

     Renaissance  Title (RT) is a licensed  title  agency.  The  majority of AFA
     customers'  transactions  are  closed  using  RT's  services.  RT earns its
     revenues  through  its  share of title  premiums  and  escrow  fees.  Title
     premiums are prescribed  statutory  rates;  however,  escrow fees are based
     upon general market  conditions.  RT is not a title  insurance  company and
     relies on other title insurance companies to underwrite its title policies.


     Strategic Alternatives

     After reviewing the Company's financial condition and operating results and
     current  economic  and market  conditions,  the board of  directors  of the
     Company decided to consider various financial and strategic alternatives to
     minimize current expenditures and maximize shareholder value.

     To enhance and maximize  shareholder  value, the board of directors decided
     to  analyze a number  of  options,  including  (i)  attempting  to list the
     Company's  common  stock with an exchange;  (ii)  acquiring or merging with
     another real estate and mortgage  banking  company;  (iii) selling all or a
     portion of the Company;  (iv) selling additional equity; and (v) taking the
     Company private. The Board of Directors'  preliminary  conclusions are that
     taking the Company private is likely the most feasible and effective way to
     maximize shareholder value.

     The Company is not  obligated  to complete  any of these  transactions  and
     cannot  offer  any  assurances  that  any of  these  transactions  will  be
     implemented.



                                       9
<PAGE>

                      RENAISSANCE ACCEPTANCE GROUP, INC.



     Results of Operations


     Quarter ended  September  30, 2002 compared to quarter ended  September 30,
     2001

     The  Company's  net loss  decreased  to $380,000  during the quarter  ended
     September 30, 2002 from $843,000 for the quarter ended September 30, 2001.


     Net Revenues

     Net revenues for the quarter ended  September  30, 2002 were  approximately
     $1,327,000 as compared with  $1,691,000 for the quarter ended September 30,
     2001,  a decrease  of  $364,000.  A  decrease  in loan  production  and the
     corresponding  decrease  in  gain  on  sales  of  loans  were  the  primary
     contributors to the decrease in net revenues.


     Gain on sales of loans

     Gain on sales of loans were  approximately  $624,000 for the quarter  ended
     September 30, 2002 compared with $998,000 for the quarter ending  September
     30, 2001. The following table reflects loan originations during the quarter
     ended  September  30, 2002 as compared to the quarter  ended  September 30,
     2001.  Loans  are  typically  sold to  investors  by ULP  within 30 days of
     origination.  Gains are recorded in  operations  upon the sale of the loan.
     The table below shows production levels for each quarter.

     (Production $'s in millions)
     -------------------- ----------------------- ------------------------
     Production
     Channel              September 30, 2001      September 30, 2002
     -------------------- ----------------------- ------------------------
     Wholesale                       $ 44.8                  $  0.5
     -------------------- ----------------------- ------------------------
     Retail                             7.1                     6.2
     -------------------- ----------------------- ------------------------
     Retail-AFA                         6.2                     7.4
     -------------------- ----------------------- ------------------------
     Streamline                           -                     3.0
                                     ------                  ------
     -------------------- ----------------------- ------------------------
          Total                      $ 58.1                  $ 17.1
     -------------------- ----------------------- ------------------------


     Gross profit on sales of loans,  which includes net interest  income earned
     on  loans,  as  well as  that  paid to  warehouse  lenders  on  these  loan
     categories generally ranged from (as a percent of the loan amount)

          o    Wholesale 0.50%- 1.25%
          o    Retail 1.75%- 4.00%
          o    Retail AFA 2.50%- 5.50%
          o    Streamline 2.50%- 5.00%

     Gain on sales of loans decreased considerably from 2001 to 2002. Production
     levels for the  wholesale  business  decreased  almost 100%, as the company
     exited the wholesale business in 2001. Retail production levels,  including
     AFA production,  were level between the two periods. In September 2002, ULP
     began  originating  FHA  streamline  refinance  loans  through  a  separate
     in-house  production  unit.  Although  the  Company  originated  $3 million
     "streamlines"  during late September 2002, none of these loans were sold to
     investors  during  the  quarter,  and thus,  no  income  was  recorded  for
     streamline refinance loans for the quarter.


     AFA education and service fees

     The following highlights the significance of the AFA Program to the results
     of operations.  The table below reflects gross revenues  related to the AFA
     transactions  completed  during the quarters  ended  September 30, 2002 and
     September 30, 2001.


                                       10

<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.


<TABLE>
<CAPTION>

                                                 For the Three Months              For the Three Months
                                                        Ended                             Ended
                                                  September 30, 2001                September 30, 2002
---------------------------------------- --------------------------------- ---------------------------------
  <S>                                                 <C>                               <C>

  AFA Transactions                                    59 homes                          65 homes
---------------------------------------- --------------------------------- ---------------------------------
  Average sales price per home                        $118,162                          $113,033
---------------------------------------- --------------------------------- ---------------------------------
  Education and service fee income                    $400,702                          $345,911
---------------------------------------- --------------------------------- ---------------------------------
  Per transaction                                      $6,792                            $5,322
---------------------------------------- --------------------------------- ---------------------------------
  Real estate commission                              $181,979                          $193,317
---------------------------------------- --------------------------------- ---------------------------------
  Per transaction                                      $3,084                            $2,974
---------------------------------------- --------------------------------- ---------------------------------
  Title and escrow fees                               $80,245                           $91,570
---------------------------------------- --------------------------------- ---------------------------------
  Per transaction                                      $1,360                            $1,409
---------------------------------------- --------------------------------- ---------------------------------
</TABLE>

     The education and service fee  attributable  to the AFA program is variable
     and is paid at closing.  This fee is determined by the ultimate  difference
     between the fair value or  appraised  value a customer  pays for a home and
     the  transaction  costs that are paid for by the seller of the home as well
     as the net  proceeds  that the seller has agreed to receive.  These  seller
     paid costs and net proceeds  are heavily  negotiated  on each  transaction.
     Real  estate  commission  is usually 3% of the  seller's  agreed upon sales
     price,  title premiums are prescribed  statutory  rates and escrow fees are
     based upon general market conditions.

     Sales and costs of sales on sales of real estate

     As previously  indicated,  the Company's  business strategy related to real
     estate shifted in May 2001 away from purchasing, refurbishing and reselling
     real estate, to the AFA business,  therefore there are no significant sales
     and cost of sales balance activity for 2002.

     Operating Expenses

     Operating  expenses  decreased to approximately  $1,593,000 for the quarter
     ended  September 30, 2002 as compared with $2,423,000 for the quarter ended
     September 30, 2001 or a decrease of $830,000.

     Personnel and related expense

     Personnel expense decreased to $839,000 during the quarter ending September
     30,  2002 from  $1,571,000  for the same  period in 2001,  or a decrease of
     $732,000.  During the quarter ended September 30, 2002, compensation of key
     management of the Company was revised to only allow compensation to be paid
     from  current  Company  profits,  resulting  in savings  to the  Company of
     approximately  $262,000.  Other senior  executives were eliminated from the
     Company in 2002,  resulting  in expense  savings of $160,000  from the same
     quarter in 2001.  Additionally,  the Company had increased  their workforce
     during  the prior  year as the AFA  business  commenced,  and  subsequently
     implemented workforce reductions at the end of January 2002.

     General and administrative expense

     General and administrative expense decreased to $446,000 during the quarter
     ended  September 30, 2002 from $564,000 for the quarter ended September 30,
     2001, a decrease of $118,000.

     Professional and legal expense were  approximately  $64,000 for the quarter
     ended  September  30, 2002 as  compared to $120,000  for the same period in
     2001, or a decrease of $57,000.  As a result of the  Company's  merger with
     Cardiac  Control  Systems,  Inc.  during July 2001,  the  Company  incurred
     significant legal and other professional costs in the prior year.

                                       11
<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.

     Travel and  entertainment  expense  decreased to $27,000 during the quarter
     ended  September 30, 2002 from $56,000 for the quarter ended  September 30,
     2001, a decrease of $29,000.  The Company incurred significant travel costs
     in an effort to start up the AFA  business in the  Austin,  Houston and San
     Antonio  markets  during  the  third  quarter  of 2001.  The  Company  also
     interviewed and recruited employees in these markets during the prior year.

     General office expenses,  including equipment leases, supplies and software
     were $32,000 for the quarter ended September 30, 2002 compared with $84,000
     for the same period in 2001,  a decrease  of $52,000.  The branch of ULP in
     Austin,  which ceased  operations in 2001,  had equipment  lease expense of
     $12,000 in the third  quarter of the prior year.  Additionally,  as the AFA
     business began operations in June of the prior year and relocated corporate
     headquarters in 2001, the Company  incurred  "start-up" costs by purchasing
     needed  supplies,  software,  and equipment as well as costs for recruiting
     materials.

     Occupancy  costs  increased to $141,000  during the quarter ended September
     30, 2002 from $76,000 for the quarter ended September 30, 2001, an increase
     of $65,000.  During September 2001, as a result of operational  growth, the
     Company relocated its entire Dallas operations  increasing  monthly rent by
     $25,000.


     Advertising

     Advertising   expense  increased  to  $239,000  during  the  quarter  ended
     September  30, 2002 from  $231,000 for the quarter  ended in September  30,
     2001,  an increase of $8,000.  Although  there was a slight  increase,  the
     amount  spent  on  advertising  is  generally  consistent  between  the two
     periods.  The AFA Program is based upon  obtaining  customers  using direct
     marketing  methods,  primarily outbound direct mail. The number of mailings
     sent out on a monthly basis was approximately  170,000 to 220,000 pieces of
     1st and 3rd class mail during both periods.

     Depreciation

     Depreciation  and  amortization  expense  increased  to $69,000  during the
     quarter  ended  September  30, 2002 from  $56,000 for the  quartered  ended
     September 30, 2001,  or an increase of $13,000.  The increase is based upon
     the addition of property and equipment  associated  with the September 2001
     physical relocation of the Company.

     Interest

     Net interest  expense of $114,000  during the quarter  ended  September 30,
     2002 and $112,000 for the quarter ended  September 30, 2001 are  comparable
     on a quarter to quarter basis.

     Nine  months  ended  September  30,  2002  compared  to nine  months  ended
     September 30, 2001

     The  Company's net loss  decreased to $1,484,000  for the nine months ended
     September 30, 2002 from a net loss of $1,971,000  for the nine months ended
     September 30, 2001.

     Net Revenues

     Net  revenues  for  the  nine  months   ended   September   30,  2002  were
     approximately  $4,859,000 as compared with  $3,831,000  for the nine months
     ended September 30, 2001, an increase of $1,028,000.  AFA  transactions and
     the  various  revenues  these  transactions  generate  contributed  to  the
     majority of this growth.

     The following highlights the significance of the AFA Program to the results
     of operations during the nine months ended September 30, 2002 and September
     30,  2001.  The table  below  reflects  gross  revenues  related to the AFA
     transactions  completed during the nine months ended September 30, 2002 and
     September 30, 2001 comparably.


                                       12
<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.


<TABLE>
<CAPTION>
                                               For the Nine Months Ended          For the Nine Months Ended
                                                   September 30, 2001                 September 30, 2002
----------------------------------------- ---------------------------------- ---------------------------------
  <S>                                                  <C>                               <C>
  AFA Transactions                                     67 homes                          239 homes
----------------------------------------- ---------------------------------- ---------------------------------
  Average sales price per home                         $114,805                           $112,625
----------------------------------------- ---------------------------------- ---------------------------------
  Education and service fee income                     $489,130                          $1,519,917
----------------------------------------- ---------------------------------- ---------------------------------
  Per transaction                                       $7,300                             $6,359
----------------------------------------- ---------------------------------- ---------------------------------
  Real estate commission                               $190,444                           $729,598
----------------------------------------- ---------------------------------- ---------------------------------
  Per transaction                                       $2,842                             $3,053
----------------------------------------- ---------------------------------- ---------------------------------
  Title and escrow fees                                 $93,712                           $247,787
----------------------------------------- ---------------------------------- ---------------------------------
  Per transaction                                       $1,399                             $1,037
----------------------------------------- ---------------------------------- ---------------------------------


</TABLE>


     Gains on sale of loans

     Gains on sale of loans were  approximately  $2,067,000  for the nine months
     ended  September  30, 2002  compared  with  $2,026,000  for the nine months
     ending  September 30, 2001. The following table reflects loan  originations
     during the nine  months  ended  September  30, 2002 as compared to the nine
     months ended  September 30, 2001.  Loans are typically sold to investors by
     ULP within 30 days of  origination.  Gains are recorded in operations  upon
     the sale of the loan.  The table  below  shows  production  levels for each
     nine-month period.

     (Production $'s in millions)
    --------------------- ----------------------- ------------------------
    Production
    Channel                  September 30, 2001      September 30, 2002
    --------------------- ----------------------- ------------------------
    Wholesale                       $  130.6                 $ 16.7
    --------------------- ----------------------- ------------------------
    Retail                              14.9                   21.8
    --------------------- ----------------------- ------------------------
    Retail-AFA                           6.9                   27.4
    --------------------- ----------------------- ------------------------
    Streamline                             -                    3.0
                                    --------                -------
    --------------------- ----------------------- ------------------------
         Total                      $ 152.4                  $ 68.9
    --------------------- ----------------------- ------------------------

     Gross profit on sales of loans,  which includes net interest  income earned
     on  loans,  as  well as  that  paid to  warehouse  lenders  on  these  loan
     categories generally ranged from (as a percent of the loan amount)

          o    Wholesale 0.50%- 1.25%
          o    Retail 1.75%- 4.00%
          o    Retail AFA 2.50%- 5.50%
          o    Streamline 2.50%- 5.00%


     Operating Expenses

     Operating expenses increased to approximately $5,997,000 in the nine months
     ended  September 30, 2002 as compared with  $5,348,000  for the nine months
     ended September 30, 2001 or an increase of $649,000.


                                       13
<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.


     Personnel and related expense

     Personnel  expense  increased to  $3,449,000  during the nine months ending
     September  30,  2002 from  $3,329,000  for the same  period in 2001,  or an
     increase of $120,000.  As previously  mentioned,  the transition to the AFA
     business required  significant  additions in personnel for TRES, RT and AFA
     sales representatives.  Additionally,  ULP personnel expense increased with
     the shift  from the  wholesale  business  to retail  business.  The cuts to
     executive and senior management compensation in the third quarter 2002 were
     offset as most of these positions were added throughout 2001.

     General and administrative expense

     General and administrative  expense increased to $1,540,000 during the nine
     months ended  September 30, 2002 from  $1,374,000 for the nine months ended
     September  30,  2001,  or an increase  of  $166,000.  The  majority of this
     increase resulted from operational growth.

     Occupancy  costs  increased  to  $433,000  during  the  nine  months  ended
     September  30, 2002 from  $176,000 for the nine months ended  September 30,
     2001,  an increase  of  $257,000.  During  September  2001,  as a result of
     growth,  the Company  relocated  its entire  Dallas  operations  increasing
     monthly  rent by $25,000.  Additionally,  AFA began and  continues to lease
     office space in Houston and San Antonio.

     Professional  and legal expenses were  approximately  $291,000 for the nine
     months ended September 30, 2002 as compared to $420,000 for the same period
     in 2001,  or a decrease of $129,000.  As a result of the  Company's  merger
     with Cardiac Control Systems,  Inc. and the preferred stock offering during
     the first half of 2001,  the Company  incurred a  considerable  increase in
     legal expenses during the first nine months of 2001. Legal expenses in 2002
     were incurred primarily in the normal course of business.

     Advertising

     Advertising  expense  increased  to $797,000  during the nine months  ended
     September 30, 2002 from $349,000 for the nine months ended in September 30,
     2001, or an increase of $448,000. The AFA program, which began May 2001, is
     based upon obtaining  customers using direct marketing  methods,  primarily
     outbound direct mail. Prior to the AFA program,  advertising was limited to
     a few newspaper ads and press advertisements.  As a result,  advertising in
     2002  captured  nine months  direct mail expense  versus four months direct
     mail expense in 2001.

     Depreciation

     Depreciation and amortization expense increased to $212,000 during the nine
     months  ended  September  30, 2002 from  $150,000 for the nine months ended
     September 30, 2001,  or an increase of $62,000.  The increase is based upon
     the addition of fixed assets associated with the relocation of the Company.

     Interest

     Net interest expense of $346,000 during the nine months ended September 30,
     2002,  decreased $109,000 from $455,000 for the nine months ended September
     30,  2001.  The Company had a revolving  line of credit in 2001  bearing an
     interest  rate of 15% per annum which was paid off in June 2001  accounting
     for the majority of the decrease.  The conversion of  subordinated  debt to
     preferred stock during the second quarter of 2001, also decreased  interest
     expense overall for the nine months ending September 30, 2002.


     Liquidity and Capital Resources

     During the nine months ended September 30, 2002, the Company's unrestricted
     cash declined to $71,000 from  $404,000.  The Company's  operating  loss of
     $1,484,000  offset by the collection of $434,000 in  receivables,  sales of
     $145,000  in real  estate  held for sale and  sales  and  collections,  and
     $198,000 in loans held for investment  led to this  decrease.  In addition,
     trade payables have aged and the Company has relied upon timely  short-term
     borrowings  from  significant  shareholders  to  provide  cash  flow to the
     business.

                                       14
<PAGE>
                      RENAISSANCE ACCEPTANCE GROUP, INC.


     ULP has an  $18,000,000  revolving  warehouse  facility  with  Regions Bank
     ("Regions"),  whereby  loans are  financed  for a  maximum  of 60 days with
     pre-approved investor take-out commitments.  Amounts are advanced under the
     facility at 100% of the "net loan value" (as  defined)  which  approximates
     the related  loan  amount.  Borrowings  bear  interest at LIBOR plus 2.75%,
     (4.53% at November 13, 2002) and are  collateralized  by the related loans.
     Certain members of management guarantee the facility.

     The Regions facility contains debt covenants that require ULP to maintain a
     ratio of current assets to current  liabilities of not less than 1.05 to 1,
     a ratio of total liabilities to tangible net worth of no greater than 10 to
     1 and tangible net worth of at least  $250,000.  At September 30, 2002, ULP
     was in compliance with these covenants. However, given its current tangible
     capital  levels,  ULP was near its maximum  credit  availability  under the
     terms of this  facility at September 30, 2002.  Unless  capital is added to
     ULP,  additional  borrowings  under this  warehouse  line will be  severely
     limited.

     ULP also has a revolving  warehouse facility with Monitex Financial Service
     ("Monitex")  whereby  loans  are  financed  for a  maximum  of 60 days with
     pre-approved investor take-out commitments. Financing is at 99% of the note
     amount and is collateralized by the related notes.  Monitex is guaranteed a
     rate of 12.0% per annum.

     The  Company  underwent  a  restructuring  in January  2002 and  eliminated
     approximately 25% of its employees.  During the quarter ended September 30,
     2002,  it has  continued  to eliminate  expenses,  and has also revised its
     marketing  strategy  resulting  in a  reduction  of over 40% of the average
     amounts spent for  advertising  in the fourth  quarter of 2001.  During the
     quarter ended  September 30, 2002,  compensation  of key  management of the
     Company has been revised to only allow compensation to be paid from current
     Company  profits.  As such, no  compensation  was paid to these  executives
     during August and  September.  Although  these savings have been made,  the
     Company's  ability to continue to meet its cash needs depends on it meeting
     its current and  long-term  revenue  projections  and  continued  favorable
     treatment from it trade vendors.  There are no current  financing  plans in
     place which will provide  needed  operating cash flow if business plans are
     not met.


     ITEM 3.  CONTROLS AND PROCEDURES

     Under the  supervision  and with the  participation  of the Company's Chief
     Executive   Officer,   management   of  the  Company  has   evaluated   the
     effectiveness  of the  Company's  disclosure  controls and  procedures  (as
     defined in Rule 13a-14(c) and Rule 15d-14 under the Securities Exchange Act
     of 1934) as of a date  within  90 days  prior  to the  filing  date of this
     report.  Based on that evaluation,  the Chief Executive  Officer  concluded
     that, as of the date of the evaluation,  the Company's  disclosure controls
     and  procedures  are  effective  in  timely  alerting  him to the  material
     information relating to the Company required to be included in its periodic
     filings with the Securities and Exchange Commission.

     During the period covered by this report, there were no significant changes
     in the Company's internal controls or, to management's  knowledge, in other
     factors that could  significantly  affect these controls  subsequent to the
     date of their evaluation.


     PART II - OTHER INFORMATION

     ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits
None

(b)  Reports on Form 8-K
None


                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
     caused this report to be signed on its behalf by the undersigned, thereunto
     duly authorized.



     Dated:   November 13, 2002     RENAISSANCE ACCEPTANCE GROUP, INC.


                                    By: /s/ Paul Fagan
                                       ---------------------------------------
                                       Paul Fagan
                                       President and Chief Executive Officer










                                       15


<PAGE>
                       RENAISSANCE ACCEPTANCE GROUP, INC.

                                 CERTIFICATIONS

I, Paul Fagan, President and Chief Executive Officer of the registrant,  certify
that:

1.   I have  reviewed  this  quarterly  report  on Form  10-QSB  of  Renaissance
     Acceptance Group, Inc.;

2.   Based on my knowledge,  this  quarterly  report does not contain any untrue
     statement of a material fact or omit to state a material fact  necessary to
     make the statements  made, in light of the  circumstances  under which such
     statements  were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my  knowledge,  the  financial  statements,  and  other  financial
     information  included  in this  quarterly  report,  fairly  present  in all
     material respects the financial  condition,  results of operations and cash
     flows of the  registrant  as of, and for,  the  periods  presented  in this
     quarterly report;

4.   I am responsible for establishing and maintaining  disclosure  controls and
     procedures  (as  defined in Exchange  Act Rules  13a-14 and 15d-14) for the
     registrant and have:

     a)  designed  such  disclosure  controls  and  procedures  to  ensure  that
         material  information   relating  to  the  registrant,   including  its
         consolidated  subsidiaries,  is made known to me by others within those
         entities, particularly during the period in which this quarterly report
         is being prepared;

     b)  evaluated the effectiveness of the registrant's disclosure controls and
         procedures as of a date within 90 days prior to the filing date of this
         quarterly report (the "Evaluation Date"); and

     c)  presented  in  this  quarterly   report  our   conclusions   about  the
         effectiveness  of the disclosure  controls and  procedures  based on my
         evaluation as of the Evaluation Date;

5.   I have disclosed,  based on my most recent evaluation,  to the registrant's
     auditors and the audit  committee of  registrant's  board of directors  (or
     persons performing the equivalent functions):

     a)  all  significant  deficiencies  in the design or  operation of internal
         controls  which  could  adversely  affect the  registrant's  ability to
         record,   process,   summarize  and  report  financial  data  and  have
         identified  for the  registrant's  auditors any material  weaknesses in
         internal controls; and

     b)  any fraud,  whether or not material,  that involves management or other
         employees  who have a  significant  role in the  registrant's  internal
         controls; and

6.   I have  indicated  in this  quarterly  report  whether  or not  there  were
     significant  changes in internal  controls or in other  factors  that could
     significantly  affect internal  controls  subsequent to the date of my most
     recent  evaluation,   including  any  corrective  actions  with  regard  to
     significant deficiencies and material weaknesses.



Date:  November 13, 2002                      /s/ Paul Fagan
                                              --------------------------
                                              Paul Fagan
                                              Chief Executive Officer and
                                              principal financial officer