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: June 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 Identification No.)
  incorporation  or organization)

                         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: August 15, 2002: Common Stock: 4,966,490

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


<PAGE>


<TABLE>
<CAPTION>


                       RENAISSANCE ACCEPTANCE GROUP, INC.
                                      INDEX

                                                                                                Page
                                                                                                -----
     <S>                                                                                         <C>

     Part I - Financial Information

         Item 1. Financial Statements                                                             2

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


     Part II - Other Information

         Item 1. Legal Proceedings                                                               15

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


</TABLE>

<PAGE>


ITEM 1. FINANCIAL STATEMENTS


                       RENAISSANCE ACCEPTANCE GROUP, INC.
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>


                                                                                      JUNE 30, 2002      DECEMBER 31, 2001
                                                                                        (Unaudited)
     <S>                                                                                 <C>              <C>

     ASSETS

     Cash and cash equivalents-unrestricted                                              $   227,393      $   404,496
     Cash and cash equivalents-restricted                                                    214,133          192,145
     Accounts receivable and prepaid expenses                                                271,972          671,090
     Loans held for sale                                                                   5,624,019       12,743,053
     Loans held for investment, net of reserves of $12,851 and $104,367                      249,318          466,667
     Real estate held for sale                                                               252,891          338,057
     Property  and  equipment,  net of  accumulated  depreciation  of $433,097 and
     $293,726                                                                                338,477          478,309
     Other assets                                                                             31,386           61,602
                                                                                         -----------      -----------
                   Total assets                                                          $ 7,209,589      $15,355,419
                                                                                         ===========      ===========

     LIABILITIES AND SHAREHOLDERS' DEFICIT

     Warehouse lines of credit                                                           $ 5,361,580      $12,614,968
     Accounts payable, accrued liabilities and short term debt                             1,389,142        1,170,482
     Subordinate debt, net of discount                                                     3,482,405        3,476,852
                                                                                         -----------      ------------
                   Total liabilities                                                      10,233,127       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,  4,966,490
     and 5,000,000 shares issued and outstanding                                              4,966             5,000
     Treasury Stock, 50,000 shares                                                          (13,000)           -
     Additional paid-in capital                                                             417,119           417,085
     Accumulated deficit                                                                 (5,590,123)       (4,486,468)
                                                                                         -----------      ------------
                   Total shareholders' deficit                                           (3,023,538)       (1,906,883)
                                                                                         -----------      ------------
                   Total liabilities and shareholders' deficit                           $7,209,589       $15,355,419
                                                                                         ===========      ============



</TABLE>


       See accompanying notes to these consolidated financial statements


                                       2

<PAGE>
<TABLE>
<CAPTION>


                       RENAISSANCE ACCEPTANCE GROUP, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS


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

     NET REVENUES:
     Sales of residential real estate          $    -                 $  1,776,391        $     64,350           $ 4,564,813
     Cost  of  residential  real  estate            -                   (1,750,755)            (76,655)           (3,874,756)
     sold
     Gain on sales of loans                        690,263                 411,446           1,443,793             1,027,693
     AFA education and services fees               500,800                  88,428           1,174,006                88,428
     Real estate commission                        280,838                   8,465             536,281                 8,465
     Title company fees and net                     69,691                  13,467             156,217                13,467
     premiums
     Other income                                   85,590                 177,980             234,547               311,356
                                          -----------------       -----------------    ----------------       ----------------
     Total net revenues                        $ 1,627,182            $    725,422        $  3,532,539           $ 2,139,466

     OPERATING EXPENSES:
     Personnel and related expense               1,176,204                 958,159           2,609,634             1,757,937
     General and administrative                    480,288                 345,344           1,093,536               810,129
     Advertising expense                           221,980                  81,424             557,500               118,172
     Depreciation and amortization                  78,287                  55,948             143,430                93,921
     Acquisition expense
                                                         -                 145,000                   -               145,000
                                          -----------------       -----------------    ----------------       ----------------
     Total operating expenses                    1,956,759               1,585,875           4,404,100             2,925,159
                                          -----------------       -----------------    ----------------       ----------------

     Loss from operations                         (329,577)               (860,453)           (871,561)             (785,693)
                                          -----------------       -----------------    ----------------       ----------------

     OTHER EXPENSE -
     Interest  expense,  net of interest          (116,850)               (144,987)           (232,094)             (342,457)
     income

     Net loss                                  $  (446,427)           $ (1,005,440)       $ (1,103,655)          $(1,128,150)
                                          =================       =================    ================       ================


     Basic and diluted loss per share          $     (0.09)           $      (0.22)       $      (0.22)          $     (0.25)
     Basic and diluted  weighted average
     shares outstanding                          4,966,490               4,618,333           4,983,245             4,596,667



</TABLE>

        See accompanying notes to these consolidated financial statements


                                       3
<PAGE>

<TABLE>
<CAPTION>

                       RENAISSANCE ACCEPTANCE GROUP, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

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

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss                                                                          $  (1,103,655)        $(1,128,150)
     Adjustments  to  reconcile  net  loss  to net  cash  used  in  operating
     activities:
     Depreciation expense                                                                    143,430              92,069
     Amortization of subordinated debt discount                                                5,553               1,851
     Common stock issued for compensation                                                      -                   9,472
     Net changes in assets and liabilities:
          Accounts receivable, prepaid expenses and other assets                             429,333             (76,640)
          Loans held for sale and warehouse lines payable, net                              (134,354)           (919,763)
          Real estate held for sale                                                                              516,843
          Residences contracted for sale                                                      85,166           1,257,156

          Deferred gain                                                                        -                (150,498)
          Accounts payable and accrued liabilities                                            17,410            (100,029)
                                                                                     -----------------     ----------------
     Net cash used in operating activities                                                  (557,117)           (497,689)

CASH FLOWS FROM INVESTING ACTIVITIES:
     Increase in restricted cash                                                             (21,988)               -
     Purchase of property and equipment                                                       (3,598)           (238,096)
     Collection of loans held for investment                                                 129,371              36,990
                                                                                     -----------------     ----------------
     Net cash provided (used) in investing activities                                        103,785            (201,106)

CASH FLOWS FROM FINANCING ACTIVITIES:
        Purchase of treasury Stock                                                           (13,000)               -
        Issuance of Preferred Stock Series A                                                       -            1,636,500
        Net proceeds from short term borrowings                                              201,251                -
        Sales of loans held for investment                                                    87,978                -
                                                                                     -----------------     ----------------
        Net cash provided (used) in financing activities                                     276,229            1,636,500


NET CHANGE IN CASH AND CASH EQUIVALENTS                                                     (177,103)             937,705

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

CASH AND CASH EQUIVALENTS, end of period                                               $      227,393        $  1,437,739
                                                                                     =================     ================



SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Conversion of subordinated debt to preferred stock                                                           $    500,000
Warehouse line settled for contracts for deed and mortgage loans                                             $  1,100,000
Interest paid, including warehouse lines of credit                                     $      233,054        $    390,430


</TABLE>


        See accompanying notes to these consolidated financial statements



                                       4
<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 4,966,490  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   4,696,490   shares  of  the   Company's   outstanding   common  stock
     (approximately 94.6 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.


                                       5
<PAGE>
                       RENAISSANCE ACCEPTANCE GROUP, INC.


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




2.   UNAUDITED INFORMATION
     ---------------------
     The June 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 six month  periods ended June 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 six months ended June 30, 2002 and 2001.



     Quarter Ended June 30, 2002
<TABLE>
<CAPTION>

                                                            Real                  Mortgage

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

          Net revenues from external customers          $  936,920            $    690,262            $  1,627,182

          Net loss                                      $ (420,278)           $    (26,149)           $   (446,427)

          Identifiable assets                           $  559,186            $  6,650,403            $  7,209,589


<CAPTION>

     Quarter Ended June 30, 2001
                                                            Real                  Mortgage

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

          Net revenues from external customers          $   180,998             $    544,424           $   725,422

          Net income (loss)                             $(1,066,624)            $     61,184           $(1,005,440)

          Identifiable assets                           $ 1,128,541             $ 16,696,789           $17,825,330


</TABLE>

                                       6
<PAGE>
                       RENAISSANCE ACCEPTANCE GROUP, INC.

<TABLE>
<CAPTION>


     Six Months Ended June 30, 2002

                                                            Real                  Mortgage

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

          Net revenues from external customers       $   2,088,746            $   1,443,793          $  3,532,539

          Net loss                                   $    (913,165)           $    (190,490)         $ (1,103,655)

          Identifiable assets                        $     559,186            $   6,650,403          $  7,209,589



<CAPTION>

     Six Months Ended June 30, 2001
                                                            Real                  Mortgage

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

          Net revenues from external customers         $  1,111,773               $ 1,027,693           $ 2,139,466

          Net income (loss)                            $ (1,277,639)              $   149,489           $(1,128,150)

          Identifiable assets                          $  1,128,541               $16,696,789           $17,825,330


</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 2001, ULP was  transformed  from a
     predominately wholesale lender to a mortgage company with an increasing mix
     of retail business and in 2002, becoming a predominantly retail lender.


     Ancillary Businesses

     Texas Real Estate  Systems,  LLC (TRES) is a licensed  real estate  broker,
     providing services 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.


     Results of Operations


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

     The Company's net loss decreased to $446,000  during the quarter ended June
     30, 2002 from $1,005,000 for the quarter ended June 30, 2001.


                                       9
<PAGE>
                       RENAISSANCE ACCEPTANCE GROUP, INC.


     Net Revenues

     Net  revenues  for the  quarter  ended  June 30,  2002  were  approximately
     $1,627,000  as compared  with $725,000 for the quarter ended June 30, 2001,
     an increase of $902,000.  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 quarter ended June 30, 2002. The table below reflects
     gross revenues related to the AFA transactions completed during the quarter
     ended June 30, 2002. Only eight AFA transactions  were completed during the
     three months ended June 30, 2001.

                                           For the Three Months Ended
                                                  June 30, 2002
---------------------------------------- ---------------------------------
  AFA Transactions                                    89 homes
---------------------------------------- ---------------------------------

  Average sales price per home                        $113,425
---------------------------------------- ---------------------------------

  Education and service fee income                    $500,800
---------------------------------------- ---------------------------------
  Per transaction                                      $5,627
---------------------------------------- ---------------------------------

  Real estate commission                              $280,838
---------------------------------------- ---------------------------------
  Per transaction                                      $3,155
---------------------------------------- ---------------------------------

  Title and escrow fees                               $69,691
---------------------------------------- ---------------------------------
  Per transaction                                       $783
---------------------------------------- ---------------------------------

     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 substantive sales
     and cost of sales activity for 2002.

     Gain on sales of loans

     Gain on sales of loans were  approximately  $690,000 for the quarter  ended
     June 30, 2002 compared with $411,000 for the quarter  ending June 30, 2001.
     The following  table reflects loan  originations  during quarter ended June
     30, 2002 as compared to quarter  ended June 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                    June 30, 2002           June 30, 2001
    -------                    -------------           -------------

    Wholesale                        $ 6.2                   $ 50.1
    --------------------- ----------------------- ------------------------
    Retail                             7.1                      4.2
    --------------------- ----------------------- ------------------------
    Retail-AFA                        10.2                      0.7
                                      ----                      ---
    --------------------- ----------------------- ------------------------
         Total                       $23.5                   $ 55.0
    --------------------- ----------------------- ------------------------

                                       10
<PAGE>
                       RENAISSANCE ACCEPTANCE GROUP, INC.


     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%.

     As such,  due to the increase in volume of retail  loans versus  wholesale,
     (specifically Retail-AFA), net gains increased even though gross production
     decreased.

     Operating Expenses

     Operating  expenses  increased to  approximately  $1,957,000 in the quarter
     ended June 30, 2002 as compared with  $1,586,000 for the quarter ended June
     30, 2001 or an increase of $371,000.

     Personnel and related expense

     Personnel  expense  increased to $1,176,000  during the quarter ending June
     30,  2002 from  $958,000  for the same  period in 2001,  or an  increase of
     $218,000. The transition to the AFA business required significant additions
     in  personnel.   Commission,  on  AFA  sales  transactions,   accounts  for
     approximately  $50,000.  TRES  personnel  contributed  to  $107,000  of the
     increase.  RT began  minor  operations  in May of 2001 and  contributed  to
     $51,000 of the  increased  personnel  costs.  ULP  personnel  expense  also
     increased  with the shift from  wholesale  business to a more labor intense
     retail business.

     At the end of January 2002, AFA implemented a workforce reduction to reduce
     the  company's  losses.  Due to the  reduction  of  employees  in the first
     quarter of 2002, AFA personnel  expense  decreased in the second quarter of
     2002 as compared to the first quarter of 2002 by $257,000 or 18%.

     General and administrative expense

     General and administrative expense increased to $480,000 during the quarter
     ended June 30, 2002 from  $345,000 for the quarter  ended June 30, 2001, an
     increase of $135,000. The majority of this increase resulted from growth in
     the Company overall including the addition of RT and the AFA business.

     Insurance  expense  increased to $81,000  during the quarter ended June 30,
     2002 from  $60,000  for the  quarter  ended June 30,  2001,  an increase of
     $21,000. Director and Officer insurance was purchased in the 3rd quarter of
     2001  contributing to an increase of $16,000.  In addition,  monthly health
     insurance  premiums  for  employees,  which  are paid  for by the  company,
     increased 25% when the policy was renewed in May 2002.

     Occupancy  costs  increased to $137,000  during the quarter  ended June 30,
     2002 from  $43,000  for the  quarter  ended June 30,  2001,  an increase of
     $94,000.  During  September  2001, as a result of operational  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 during the 4th quarter of 2001.

     Telephone  and fax expense  increased to $56,000  during the quarter  ended
     June 30, 2002 from $25,000 for the quarter ended June 30, 2001, an increase
     of $31,000.  Due to the expansion of operations in Dallas,  Houston and San
     Antonio,  Nextel  "direct  connect"  phones were purchased to easily access
     employees  in all areas of  operations.  Additionally,  the  company  added
     toll-free  numbers for  incoming  customer  calls  associated  with the AFA
     direct mail marketing campaigns.

     Travel and  entertainment  expense  decreased to $39,000 during the quarter
     ended June 30, 2002 from  $66,000 for the quarter  ended June 30,  2001,  a
     decrease of $27,000.  Due to the growth of the Company in 2001,  management
     interviewed and recruited potential employees in other markets.

     Postage and courier  expense  decreased to $15,000 during the quarter ended
     June 30, 2002 from $30,000 for the quarter  ended June 30, 2001, a decrease
     of $15,000.  There were  significant  postage and courier costs  associated
     with the wholesale mortgage business which has been virtually eliminated at
     ULP.

                                       11
<PAGE>
                       RENAISSANCE ACCEPTANCE GROUP, INC.


     Advertising

     Advertising expense increased to $222,000 during the quarter ended June 30,
     2002 from $81,000 for the quarter ended in June 30, 2001, or an increase of
     $141,000.  The AFA Program,  which began May 2001, 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  the second
     quarter of 2002.  During 2001,  prior to the AFA Program,  advertising  was
     limited to a few newspaper and press advertisements.

     Depreciation

     Depreciation  and  amortization  expense  increased  to $78,000  during the
     quarter ended June 30, 2002 from $56,000 for the  quartered  ended June 30,
     2001, or an increase of $22,000. The increase is based upon the addition of
     property and equipment associated with the September 2001 relocation of the
     Company.

     Interest

     Net interest  expense of $117,000  during the quarter  ended June 30, 2002,
     decreased  by $28,000  from the net  interest  expense of $145,000  for the
     quarter ended June 30, 2001.  The Company had a revolving line of credit in
     2001  bearing an  interest  rate of 15% per annum.  This line of credit was
     paid off in June 2001 accounting for the majority of the decrease.


     Six months ended June 30, 2002 compared to six months ended June 30, 2001

     The  Company's net loss  decreased to  $1,104,000  for the six months ended
     June 30, 2002 from a net loss of  $1,128,000  for the six months ended June
     30, 2001.

     Net Revenues

     Net  revenues  for the six months  ended June 30,  2002 were  approximately
     $3,533,000  as compared with  $2,139,000  for the six months ended June 30,
     2001, an increase of $1,393,000.  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 six  months  ended June 30,  2002.  The table  below
     reflects gross revenues  related to the AFA  transactions  completed during
     the six  months  ended June 30,  2002.  Only  eight AFA  transactions  were
     completed during the six months ended June 30, 2001.


                                                 For the Six Months Ended
                                                       June 30, 2002
----------------------------------------- ----------------------------------
  AFA Transactions                                     174 homes

----------------------------------------- ----------------------------------
  Average sales price per home                         $113,120
----------------------------------------- ----------------------------------

----------------------------------------- ----------------------------------
  Education and service fee income                    $1,174,006
----------------------------------------- ----------------------------------
  Per transaction                                       $6,747
----------------------------------------- ----------------------------------

----------------------------------------- ----------------------------------
  Real estate commission                               $536,281
----------------------------------------- ----------------------------------
  Per transaction                                       $3,082
----------------------------------------- ----------------------------------

----------------------------------------- ----------------------------------
  Title and escrow fees                                $156,217
----------------------------------------- ----------------------------------
  Per transaction                                        $898
----------------------------------------- ----------------------------------


                                       12
<PAGE>


                       RENAISSANCE ACCEPTANCE GROUP, INC.




     Gains on sale of loans

     Gains on sale of loans  were  approximately  $1,444,000  for the six months
     ended June 30, 2002 compared with $1,028,000 for the six months ending June
     30, 2001.  The following  table reflects loan  originations  during the six
     months  ended June 30, 2002 as  compared  to the six months  ended June 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 six-month period ended.

     (Production $'s in millions)
    --------------------- ----------------------- ------------------------
    Production
    Channel                    June 30, 2002           June 30, 2001
    -------                    -------------           -------------


    Wholesale                       $  16.2                   $ 85.8
    --------------------- ----------------------- ------------------------
    Retail                             15.6                      7.8
    --------------------- ----------------------- ------------------------
    Retail-AFA                         20.0                      0.7
                                       ----                      ---
    --------------------- ----------------------- ------------------------
         Total                      $  51.8                   $ 94.3
    --------------------- ----------------------- ------------------------

     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%.

     As such,  due to the increase in volume of retail  loans versus  wholesale,
     (specifically Retail-AFA), net gains increased even though gross production
     decreased.

     Operating Expenses

     Operating expenses increased to approximately  $4,404,000 in the six months
     ended June 30, 2002 as compared  with  $2,925,000  for the six months ended
     June 30, 2001 or an increase of $1,479,000.


     Personnel and related expense

     Personnel expense increased to $2,610,000 during the six months ending June
     30, 2002 from  $1,758,000  for the same  period in 2001,  or an increase of
     $852,000.  As  previously  mentioned,  the  transition  to the AFA business
     required  significant  additions  in  personnel.  TRES and RT,  which began
     operations  in April 2001 and May 2001,  respectively,  contributed  to the
     personnel expense increase by $396,000. RAC and ULP, combined,  contributed
     to an increase in personnel  expense of $456,000.  Of this $456,000,  sales
     personnel  added for the AFA business  contributed to $228,000  increase in
     the Dallas  area and  $56,000  increase  in other  markets.  ULP  personnel
     expense  increased  with the shift from the  wholesale  business  to retail
     business.  Additional  senior management was also added as the Company grew
     during the second half of 2001.

     General and administrative expense

     General and  administrative  expense increased to $1,094,000 during the six
     months ended June 30, 2002 from  $810,000 for the six months ended June 30,
     2001, or an increase of $284,000.  The majority of this  increase  resulted
     from operational growth.

     Occupancy  costs increased to $292,000 during the six months ended June 30,
     2002 from  $100,000 for the six months ended June 30, 2001,  an increase of
     $192,000.  During  September 2001, as a result of operational  growth,  the

                                       13
<PAGE>

                       RENAISSANCE ACCEPTANCE GROUP, INC.


     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 during the 4th quarter of 2001.

     Professional  and legal  expenses were  approximately  $227,000 for the six
     months  ended June 30, 2002 as compared to $300,000  for the same period in
     2001, or a decrease of $73,000.  As a result of The  Company's  merger with
     Cardiac  Control  Systems,  Inc during the first half of 2001,  the Company
     incurred a  considerable  increase in legal  expenses  during the first six
     months of 2001.  Currently,  legal  expenses have remained  minimal for the
     first half of 2002.  The  decrease  in legal fees is offset by the  $32,000
     increase in accounting  and auditing  costs as a result of the merger costs
     involved in operating as a public reporting company.

     Advertising

     Advertising  expense increased to $558,000 during the six months ended June
     30, 2002 from  $118,000 for the six months  ended in June 30,  2001,  or an
     increase of $440,000.  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.

     Depreciation

     Depreciation and amortization  expense increased to $143,000 during the six
     months  ended June 30, 2002 from  $94,000 for the six months ended June 30,
     2001, or an increase of $49,000. The increase is based upon the addition of
     fixed assets associated with the move of the Company.

     Interest

     Net interest expense of $232,000 during the six months ended June 30, 2002,
     decreased by $92,000 from the net interest  expense of $342,000 for the six
     months ended June 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 first quarter of 2001, also
     decreased interest expense overall for the six months ending June 30, 2002.


     Liquidity and Capital Resources

     During the six months ended June 30, 2002, the Company's  unrestricted cash
     declined  to  $227,000  from  $405,000.  The  Company's  operating  loss of
     $1,104,000  offset by the collection of $429,000 in  receivables,  sales of
     $85,000  in real  estate  held  for  sale and  $217,400  in loans  held for
     investment led to this  decrease.  In addition trade payables have aged and
     the Company has relied upon timely borrowings from significant shareholders
     to provide cash flow to the business.

     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 August 19,  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 June 30, 2002, ULP was in
     compliance with these covenants.

     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 June 30, 2002,
     it has continued to eliminate  expenses,  downsize 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  2001while  not
     materially impacting AFA revenue.  Subsequent to June 30, 2002 compensation
     of  key   management  of  the  Company  has  been  revised  to  only  allow
     compensation to be paid from current Company profits. Although these saving
     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.



                                       14
<PAGE>


                       RENAISSANCE ACCEPTANCE GROUP, INC.



     PART II - OTHER INFORMATION

     ITEM 1.  LEGAL PROCEEDINGS

     On August 10, 2002 Remodelers  Acceptance  Corporation d/b/a Assistance For
     America ("AFA") was served notice of suit by North American Communications,
     Inc.,  ("North American") in the amount of $83,083.69 plus costs. This suit
     was filed in the Court of Common Pleas,  Blair County,  Pennsylvania.  This
     suit arises from monies owed to Texas Direct,  Inc., a direct mail service,
     that filed bankruptcy.  North American purchased these accounts  receivable
     and are attempting to collect.  The parties have entered into  negotiations
     to settle this suit; however, the Company cannot provide any assurance that
     the parties will settle this  dispute on terms  favorable to the Company or
     at all.


     ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a)   Exhibits
           99.1  Certification Pursuant to Section 906 of the Sarbanes-Oxley
                 Act of 2002

     (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:   August 19, 2002       RENAISSANCE ACCEPTANCE GROUP, INC.


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









                                       15