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

                                   FORM 10-QSB

  |X| QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934

                 For the quarterly period ended: April 30, 2006

 |_| TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
                                     OF 1934

                 For the transition period ended _______________

                        Commission file number 333-52268

                    DIRECT RESPONSE FINANCIAL SERVICES, INC.
           (Exact name of small business as specified in its charter)

                                    COLORADO
                         (State or other jurisdiction of
                         incorporation or organization)

                                   84-1547578
                         (IRS Employer Identification #)

                              2899 AGOURA ROAD #115
                           WESTLAKE VILLAGE, CA 91361
                    (Address of principal executive offices)

                                  818-735-3726
                               (Telephone Number)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. |X| YES |_| NO

          APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                         DURING THE PRECEDING FIVE YEARS

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 a court. |_| YES |_| NO

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes |_| No |X|

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the last practicable date: Common Stock 74,841,168 as of June 15,
2006.

Transitional Small Business Disclosure Format: |_| YES |X| NO


<PAGE>

                    DIRECT RESPONSE FINANCIAL SERVICES, INC.

                         QUARTERLY REPORT ON FORM 10-QSB
                      FOR THE QUARTER ENDED APRIL 30, 2006


                                TABLE OF CONTENTS

PART I.   FINANCIAL INFORMATION
ITEM 1 -  FINANCIAL STATEMENTS AND NOTES                               F-1 - F-8
ITEM 2 -  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION          3
ITEM 3. - CONTROLS AND PROCEDURES                                              5

PART II.  OTHER INFORMATION
ITEM 1. - LEGAL PROCEEDINGS                                                    6
ITEM 2. - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS          6
ITEM 3. - DEFAULTS UPON SENIOR SECURITIES                                      6
ITEM 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                  6
ITEM 5. - OTHER INFORMATION                                                    6
ITEM 6. - EXHIBITS                                                             6
SIGNATURES                                                                     7


<PAGE>

                          INDEX TO FINANCIAL STATEMENTS

                    DIRECT RESPONSE FINANCIAL SERVICES, INC.

                    CONSOLIDATED INTERIM FINANCIAL STATEMENTS


                                 April 30, 2006


                                                                            Page

Consolidated Balance Sheets                                                  F-2

Consolidated Statements of Operations                                        F-3

Consolidated Statements of Cash Flows                                        F-4

Notes to Consolidated Financial Statements                                   F-5


                                      F-1
<PAGE>

                                    DIRECT RESPONSE FINANCIAL SERVICES, INC.
                                         (A DEVELOPMENT STAGE COMPANY)

                                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                     ASSETS
                                                                                      April 30,     January 31,
                                                                                        2006           2006
                                                                                     (Unaudited)      (Note 1)
                                                                                     -----------    -----------
<S>                                                                                  <C>            <C>
CURRENT ASSETS
    Cash                                                                             $         7    $     4,047
    Net investment in capital leases                                                      53,198         50,371
    Accounts Receivable net of allowance for doubtful accounts                                --             --
    Inventory                                                                             58,000         58,000
    Prepaid Expense                                                                       36,933         36,933
                                                                                     -----------    -----------
           Total current assets                                                          148,138        149,351

PROPERTY AND EQUIPMENT
    Net of $1,531 and $1,340 depreciation at April 30, 2006 and                           20,246            893
    January 31, 2006

OTHER ASSETS
    Investments                                                                          200,000        200,000
    Less valuation allowance                                                            (200,000)      (200,000)
                                                                                     -----------    -----------
           Total assets                                                              $   168,384    $   150,243
                                                                                     ===========    ===========

                                 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES
    Bank notes payable                                                               $   340,171    $   255,937
    Revolving loan payable                                                               105,399             --
    Debenture payable                                                                     92,342         92,342
    Bank overdraft                                                                        10,753             --
    Accounts payable                                                                     160,563        115,826
    Accounts payable - related party                                                     650,346        596,300
    Accrued expenses                                                                      70,602         66,396
    Shareholder deposit                                                                  165,000        165,549
    Advances from related party                                                           62,667         26,766
    Advances from stockholders, current portion                                          381,760        381,760
                                                                                     -----------    -----------
           Total current liabilities                                                   2,039,603      1,700,876
                                                                                     -----------    -----------
           Total liabilities                                                           2,039,603      1,700,876

Commitments and contingencies                                                                 --             --

STOCKHOLDERS' EQUITY (DEFICIT)
    Common stock - authorized 100,000,000 shares, no par
      value, 77,349,968 and 78,537,168 shares issued and
      outstanding at April 30, 2006 and January 31, 2006                               3,556,164      3,681,556
      Common stock warrants                                                              112,606        115,106
    Accumulated other comprehensive (loss)                                              (200,000)      (200,000)
      Subscribed stock                                                                        --       (111,824)
    (Deficit) accumulated during the development stage                                (5,339,989)    (5,035,471)
                                                                                     -----------    -----------
           Total stockholders' equity (deficit)                                       (1,871,219)    (1,550,633)
                                                                                     -----------    -----------
           Total liabilities and stockholders' equity (deficit)                      $   168,384    $   150,243
                                                                                     ===========    ===========
</TABLE>


                                                      F-2
<PAGE>

                             DIRECT RESPONSE FINANCIAL SERVICES, INC.
                                   (A DEVELOPMENT STAGE COMPANY)

                               CONSOLIDATED STATEMENTS OF OPERATIONS
                                            (Unaudited)

<TABLE>
<CAPTION>
                                                                                       April 24, 2002
                                                       Three Months    Three Months     (inception)
                                                       Ending April    Ending April    through April
                                                         30, 2006        30, 2005        30, 2006
                                                       ------------    ------------    ------------
<S>                                                    <C>             <C>             <C>
Revenues                                               $         36    $         19    $     37,702
Cost of sales                                                    --              --           5,888
                                                       ------------    ------------    ------------
         Gross Profit                                            36              19          31,814
Lease financing interest                                     18,956              --          30,899
                                                       ------------    ------------    ------------
         Total                                               18,992              19          62,713

Costs and Expenses:
         Consulting expense paid by issuing stock                --         270,000       2,760,758
         Consulting expense paid by cash                     51,773          51,000         304,168
         Professional fees                                   71,056          67,997         839,663
         Advertising and marketing                           99,690           3,295         343,834
         General and administrative                          70,156         141,533         738,016
         Rent                                                19,576           6,000         108,432
                                                       ------------    ------------    ------------
         Total                                              312,251         539,825       5,094,871

Earnings (loss) from operations                            (293,259)       (208,011)     (5,032,158)

Interest expense                                            (17,260)         (5,874)       (249,141)
Loss on investment                                               --              --         (60,000)
                                                       ------------    ------------    ------------
Net (loss)                                             $   (310,519)   $   (545,680)   $ (5,341,299)

(Loss) per share                                       $       (.01)   $       (.01)   $       (.15)


Weighted average shares outstanding                      77,635,218      71,184,796      37,817,178

</TABLE>


                                                F-3
<PAGE>

                                DIRECT RESPONSE FINANCIAL SERVICES, INC.
                                     (A DEVELOPMENT STAGE COMPANY)

                                  CONSOLIDATED STATEMENT OF CASH FLOWS
                                              (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                             April 24,
                                                                 Three          Three          2002
                                                                 Months         Months      (inception)
                                                                 Ending         Ending        through
                                                               April 30,       April 30,     April 30,
                                                                  2006           2005          2006
                                                              -----------    -----------    -----------
<S>                                                           <C>            <C>            <C>
Cash flows from operating activities:
         Net (loss)                                           $  (310,519)   $  (545,680)   $(5,341,299)
         Non-cash items included in net (loss):
                  Depreciation                                        191            112          1,531
                  Conversion and warrant derivative expense            --             --        142,861
                  Expenses paid by issuing stock                       --        270,000      2,655,633
                  Loss on investment                                   --             --         60,000
         Net change in operating assets and liabilities:
                  Accounts receivable                                  --          9,384             --
                  Net investment in capital leases                 (2,827)            --         47,336
                  Prepaid expenses and deposits                        --        (53,937)        13,067
                  Inventory                                            --             --        (58,000)
                  Accounts payable and accrued liabilities        109,079         50,268        786,287
                                                              -----------    -----------    -----------
Net cash (used) by operating activities                          (204,076)      (269,853)    (1,692,584)

Cash flows from investing activities:
         Purchase of investments                                       --             --       (260,000)
         Purchase of property and equipment                       (19,543)            --        (21,776)
                                                              -----------    -----------    -----------
Net cash (used) by investing activities                           (19,543)            --       (281,776)

Cash flows from financing activities:
         Proceeds from revolving loans                            189,633        445,570
         (Repayment) of loans --related parties                        --             --        (19,417)
         Proceeds from shareholder deposit                             --             --        465,000
         (Repayment) of shareholder deposit                          (549)          (549)
         Proceeds from loans payable - related parties             35,901          6,624        463,844
         Proceeds from common stock warrants                           --             --        115,106
         Proceeds from issuance of common stock                        --        185,595        412,038
         (Purchase) of common stock                               (16,068)            --        (17,978)
         Proceeds from debenture                                       --             --        100,000
         Bank overdraft                                            10,662         28,272         10,753
                                                              -----------    -----------    -----------
Net cash provided by financing activities                         219,579        220,491      1,974,367
                                                              -----------    -----------    -----------
Net increase (decrease) in cash                                    (4,040)       (49,362)             7
Cash at beginning of period                                         4,047         49,993             --
                                                              -----------    -----------    -----------
Cash at end of period                                         $         7            631              7
                                                              ===========    ===========    ===========

Supplemental disclosure of cash flow information:
Noncash transactions
    Note payable issued for acquisition of  investment                 --             --        220,000
Cash paid during the period for:
   Interest                                                   $        --    $        --    $    10,193
   Income taxes                                               $        --    $        --    $        --
</TABLE>


                                                  F-4
<PAGE>

                    DIRECT RESPONSE FINANCIAL SERVICES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 1 - FINANCIAL STATEMENTS

The accompanying consolidated financial statements included herein have been
prepared by Direct Response Financial Services, Inc. without audit, pursuant to
the rules and regulations of the Securities and Exchange Commission for
reporting on Form 10-QSB. Certain information and footnote disclosure normally
included in the financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted as allowed by such
rules and regulations, and the Company believes that the disclosures are
adequate to make the information presented not misleading. It is suggested that
these financial statements be read in conjunction with the January 31, 2006
audited financial statements and the accompanying notes thereto contained in the
Annual Report on Form 10-KSB filed with the Securities and Exchange Commission.
While management believes the procedures followed in preparing these financial
statements are reasonable, the accuracy of the amounts are in some respects
dependent upon the facts that will exist, and procedures that will be
accomplished by the Company later in the year. The results of operations for the
interim periods are not necessarily indicative of the results of operations for
the full year. In management's opinion all adjustments necessary for a fair
presentation of the Company's financial statements are reflected in the interim
periods included.

Amounts shown for January 31, 2006 were taken from the audited financial
statements of that date.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION AND DESCRIPTION OF BUSINESS

The Company was incorporated in the State of Colorado on April 7, 2000 as
Relevant Links, Inc. The Company is in the development stage and has had no
significant operations.

On April 29, 2002, the Company entered into an Agreement and Plan of
Reorganization between itself and Direct Response Financial Services, Inc., a
Delaware corporation (DEL), and changed its focus to the development of
financial services for the direct response industry. Because the surviving
shareholders are those of the subsidiary, the Company has accounted for the
acquisition as a reverse acquisition, which is a capital transaction and not a
business combination. Accordingly, the consolidated statements include only the
results of operations of DEL from the date of acquisition, and comparative
financial statements presented are those of the subsidiary, DEL. Because the
subsidiary had been formed on April 24, 2002, no financial information is
presented before that date.

On May 16, 2002, the Company participated in forming Direct Card Services, LLC
(DCS) for the purpose of facilitating the Company's bankcard processing
business. Under the terms of the LLC agreement, the Company has a 50% interest.


                                      F-5
<PAGE>

                    DIRECT RESPONSE FINANCIAL SERVICES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

In June of 2002, the company changed its name to Direct Response Financial
Services, Inc. The Company provides marketing and financial products and
services to merchants.

DEVELOPMENT STAGE COMPANY

Based upon the Company's business plan, it is a development stage enterprise.
Accordingly, the Company presents its financial statements in conformity with
the accounting principles generally accepted in the United States of America
that apply in establishing operating enterprises. As a development stage
enterprise, the Company discloses the deficit accumulated during the development
stage and the cumulative statements of operations and cash flows from inception
to the current balance sheet date.

BASIS OF CONSOLIDATION

The accompanying consolidated financial statements include the Company and its'
wholly owned and controlled subsidiaries. All inter-company accounts have been
eliminated in the consolidation.

The Company considers its 50% interest in DCS to be a controlling interest
because, as sole managing member, it has management control in addition to its
profit interest. Because DCS has a deficit equity position at period end, no
minority interest has been recorded.

NOTE 3- CONTINGENCIES

On February 3, 2006, the Company was named as a defendant in a civil complaint
with the County of San Diego Superior Court. The holder of the Company's
debenture loan filed a complaint for breach of contract based upon an allegation
that the Company failed to repay alleged monies due and payable under a
pre-existing convertible debenture, as amended, between the Company and the
holder of the debenture. The Company denies any liability under the complaint
and has cross-complained against the debenture holder and certain individuals
for damages caused to the Company by reason of their acts and omissions.
Contingencies exist with respect to this litigation matter and the ultimate
resolution of which cannot be presently determined. Accordingly, there can be no
assurance that the Company will prevail in this litigation.

NOTE 4 - FINANCING

On March 6, 2006, the Company entered into a Revolving Loan and Security
Agreement with a limited liability company. Pursuant to the Agreement the
Company may borrow up to $5,000,000 on a revolving basis with simple interest at
22%. Under the terms of the Agreement the Company is to repay any borrowed funds
on a twelve month amortized basis, including principal and interest, from the
activities of Direct2Own, a division of the Company. The loan proceeds are
secured by customer contracts originated by Direct2Own through the loan
proceeds. The Agreement has a term until December 1, 2009.


                                      F-6
<PAGE>

                    DIRECT RESPONSE FINANCIAL SERVICES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 5 - ACCOUNTING FOR STOCK-BASED COMPENSATION

On February 1, 2006, the Company adopted the provisions of Financial Accounting
Standards Board Statement No. 123R, "Share-Based Payment" (SFAS 123R). SFAS 123R
revised SFAS 123, "Accounting for Stock Based Compensation" and supersedes APB
Opinion No. 25, "Accounting for Stock Issued to Employees." SFAS 123R requires
companies to measure and recognize compensation expense for all employee
stock-based payments at fair value over the service period underlying the
arrangement. Therefore, the Company is now required to record the grant-date
fair value of its stock-based payments (i.e., stock options and other
equity-based compensation) in the statement of operations. The Company does not
have any employee stock-based arrangements as of April 30, 2006 or any unvested
arrangements for prior periods.

Other equity-based awards for which stock-based issuance costs were recorded
were measured at fair value on the date of grant and as of each period end
reported thereafter and were generally grants of registered stock awards.

During the three months ended April 30, 2006, in connection with the financing
agreement described in Note 4, the Company on March 17, 2006 entered into a
common stock warrant agreement with the lender that grants a warrant to purchase
shares of common stock equal to 5% of funds advanced under the loan agreement at
a price equal to the average market price for the ninety (90) day period prior
to the issuance date, based upon the lowest price of the common stock during any
trading date. The warrants expire thirty-six (36) months after the issue date.

Based upon the above method, the Company has estimated and accrued a liability
for the fair value as of April 30, 2006, of $4,691 as additional interest
expense. The computation is based upon the Black-Scholes option pricing model to
determine the estimated fair value of the warrants using an estimated life of
thirty-six (36) months, a risk free interest rate of 4.64 %, a volatility of
150.1 % and a zero dividend rate.

NOTE 6 - LEASE

The Company leased new office space for the period from April 1, 2006 to March
31, 2009. The following is the expected base rental expenses for the fiscal
years to March 31, 2009.

                       Period ended         Amount
                     ----------------    -----------
                     January 31, 2007    $    52,898
                     January 31, 2008         61,966
                     January 31, 2009         63,825
                     January 31, 2010         10,689


                                      F-7
<PAGE>

                    DIRECT RESPONSE FINANCIAL SERVICES, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE 7 - STOCK REPURCHASE

On April 28, 2006, the Company completed the repurchase of 1,491,200 shares of
its common stock in the open market and has cancelled an additional 5,000,000
shares of common stock in combination with its repurchase of shares. The
combined amount of cancelled or repurchased shares is 8.1% of the Company's
total outstanding number of shares.


                                      F-8
<PAGE>

ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS

The following discussion of our financial condition and results of our
operations should be read in conjunction with the Financial Statements and Notes
thereto. Our fiscal year ends January 31. In this annual report, references to
"Direct Response," "the Company," "we," "us," and "our" refer to Direct Response
Financial Services, Inc. and its subsidiary. Except for the historical
information contained herein, some of the statements in this Report contain
forward-looking statements that involve risks and uncertainties. These
statements are found in the sections entitled "Business," "Management's
Discussion and Analysis of Financial Condition and Results of Operations," and
"Risk Factors." They include statements concerning: our business strategy;
expectations of market and customer response; liquidity and capital
expenditures; future sources of revenues; expansion of our proposed product
line; and trends in industry activity generally. In some cases, you can identify
forward-looking statements by words such as "may," "will," "should," "expect,"
"plan," "could," "anticipate," "intend," "believe," "estimate," "predict,"
"potential," "goal," or "continue" or similar terminology. These statements are
only predictions and involve known and unknown risks, uncertainties and other
factors, including, but not limited to, the risks outlined under "Risk Factors,"
that may cause our or our industry's actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements. For example, assumptions that could cause actual
results to vary materially from future results include, but are not limited to:
our ability to successfully develop and market our products to customers; our
ability to generate customer demand for our products in our target markets; the
development of our target markets and market opportunities; and sales of shares
by existing shareholders. Although we believe that the expectations reflected in
the forward looking statements are reasonable, we cannot guarantee future
results, levels of activity, performance or achievements. Unless we are required
to do so under US federal securities laws or other applicable laws, we do not
intend to update or revise any forward-looking statements.

During the previous fiscal quarter to date, we have initiated the following
actions and strategies with regards to the on-going advancement of our business
opportunities:

Direct Response Financial Services, Inc. and its subsidiaries generated gross
sales of $23,257 and net income (loss) of ($853,471) from operations for the
twelve month period ending January 31, 2006. During the period of operations
ending January 31, 2005, the Company generated gross sales of $12,331 and net
income (loss) of $1,137,299. The significant decrease in net loss and increase
in gross sales was due in significant part to the activities of the Company's
subsidiary Direct2own.

In the previous fiscal quarter (ending April 30, 2006), the Company was
successful in creating customer sales through the Direct2Own division. The
Company treats its customer sales as actual sales for business purposes.
However, the Company's financial statements reflect these sales as lease
payments and the financial statements do not immediately recognize revenue from
such sales due to applicable accounting rules. (For example, on the Company's
Consolidated Balance Sheets under CURRENT ASSETS, under the description of "Net
investment in capital leases" amounts shown are composed of the cost of the
consumer electronic product less the down payment received plus any unearned
revenue. The unearned revenue is shown as a current liability in the balance
sheet. Some of the Company's activities were counted as actual sales and were
booked accordingly. This affected the reconciliation of all sales by the Company
noted hereafter to the numbers identified in the accompanying financial
statements.) Total sales in fiscal year ending January 31, 2006, equaled
$159,116, which comprised $41,593 of cash received from customers (representing
their down payments for consumer electronics purchased from the Company) and
$117,523 representing accounts receivable owed by customers to the Company.
These accounts receivable are due and payable to the Company monthly or
bi-monthly and if all payments are made customer contracts are fully completed
within one year after the contract is created. Importantly, the Company has met
all of its obligations to its customers at such time as its customers receive
ordered consumer products from the Company. Thereafter, the Company interfaces
with the customer primarily for collection of funds, if a customer is late on
payment, or if the customer has a question. Warranty obligations are borne by
the manufacturers of the consumer electronics sold by the Company. The Company
bears no warranty obligation to its customers.

Following fiscal year end January 31, 2006, and for the fiscal quarter from
February 1, 2006, through April 30, 2006, the Company had additional completed
orders of approximately $371,000, which comprised approximately $83,000 of cash
received from customers (representing their down payments for consumer
electronics purchased from the Company plus monthly payments received) and
approximately $288,000 representing accounts receivable owed by customers to the
Company.

The increase in gross sales from the prior year was a direct result of the
Company's initiation of the Direct2own division. The Company had nominal
contributions to gross sales from its Direct Card Services group for the three
month period ending April 30, 2006. This was a consequence of management's
decision to limit the activities of the Direct Card Services group pending the
activation of the VISA debit card loading network which is scheduled to go on
line in the summer or fall of 2006. The VISA debit card loading network should
be available at most VISA bank members. At such time as the VISA debit card
loading network is widely available the Company intends to promote its in-house
branded debit card products utilizing the VISA or MasterCard networks through
the Company's existing bank relationships.

The major basis for the increase in reported net loss in years ending 2004, 2005
and 2006 was a reclassification of certain rights granted to La Jolla Cove
Investors, Inc. in years prior to January 9, 2006, in connection with a
debenture agreement between the Company and La Jolla Cove Investors, Inc. As of
January 9, 2006, the agreement between the Company and La Jolla by its terms
ended. The Company was requested by the Securities and Exchange Commission to
amend and restate its financials for years ended January 31, 2005 and 2004 to
account for certain conversion derivative and warrant derivative liabilities
related to the debenture and warrant rights therein. Accordingly, the Company
did amend and restate its financials and filed the same with the SEC on March
22, 2006. The effect of the restated treatment of the La Jolla rights resulted
in an increase of $2,462,040 in net losses as of January 31, 2005, attributable
$1,443,020 to conversion derivative liability and


                                       3
<PAGE>

$1,019,020 to warrant derivative liability. The calculation of these liabilities
is fully discussed in Note 8 of the Company's 10-KSB/A amended and restated
financial statements.

During the previous fiscal year and quarter the Company initiated the following
actions and strategies to advance its business -

      o     The Company conceived of and started a new division called
            Direct2own which markets via the Internet, tv, print and other
            media. This division offers select consumer electronics such as
            brand name computers and tvs to consumers in the sub-prime credit
            market. www.direct2own.com. This group focuses on the sub-prime
            credit consumer who is looking to acquire a consumer electronic
            product regardless of price since the consumer needs financial
            assistance from the Company to acquire the consumer product.

      o     The Company conceived of and started a new division called
            Direct2own Electronics which markets and sells select groupings of
            premier audio and video components to those consumers who want the
            best in car or home audio/video. www.d2oelectronics.com. This
            ---------------------- group focuses on those consumers who want the
            best in car and home audio/video at the best price. The Company
            collects full payment from these consumers at the time of sale. What
            is unique about the business model and product offerings of this
            group is that the products are generally offered in groups which
            include all electronic cables, components, batteries, etc. which are
            specifically selected to function with the audio/video units
            selected by the customer. By doing so the division makes it easy for
            the consumer to buy all they need for a successful audio/video
            installation or upgrade. The product lines offered by this group and
            the combination of product packages is very unique in the consumer
            electronic retail industry and will set the Company apart from most
            of its competitors in this space.

      o     The Company re-modeled its Direct Card Services group to focus on
            implementing its core business strategy - the offering and
            distribution of pre-paid debit cards - to coincide with the
            successful launch of the VISA debit card loading network. By
            coordinating pre-paid debit card offers with the start and expansion
            of the VISA debit card loading network, the Company has a higher
            certainty that the utility of its debit cards will be recognized by
            the consumer and accordingly the demand for the Company's debit
            cards will increase since the ability for a customer to load a debit
            card offered by the Company at any VISA bank partner should prove
            compelling to the consumer.

Liquidity - The Company will need additional capital for the anticipated
expansion of its Direct2own division and the start-up and growth of its recently
launched Direct2own Electronics group. The Company anticipates meeting this need
through - a) existing cash flow from customer contracts with Direct2own, b) cash
from a Company credit line with Ravinia Funding, LLC, and c) cash from
additional credit lines with First Private Bank & Trust (the Company's existing
bank lender).

      Short Term - On a short term basis Management believes that income from
operations of the Direct2own division will generate sufficient cash to meet
current overhead requirements. In order to meet the cash needs for growth and
expansion, the Company will need to rely on existing lines of credit, potential
new lines of credit, and equity financing to the extent the same is practicable.

      Long Term - In order to fund longer term growth for the Company it will
become necessary for the Company to raise capital either through a debt or
equity facility. As the Company succeeds in its business model the cost of funds
to the Company should decrease as its business risk is lowered through
historical confirmation that its business model is profitable.

CAPITAL RAISING ACTIVITIES

We have engaged in the following financing activities and require additional
capital to expand operations to a level where revenues sufficient to sustain
operations can be generated.

REVOLVING LOAN AND SECURITY AGREEMENT

On March 6, 2006, the Company entered into a Revolving Loan and Security
Agreement with a Ravinia Funding, LLC. Pursuant to the Agreement the Company may
borrow up to $5,000,000 on a revolving basis with simple interest at 22%. A
condition precedent to any request for loan funds is the Company's delivery of
acceptable customer contracts as collateral. Ravinia Funding provides loan funds
to the Company in a ratio based upon approved customer contracts between the
Company and its customers. Under the terms of the Agreement the Company is to
repay any borrowed funds on a twelve month amortized basis, including principal
and interest, from the activities of Direct2Own, a division of the Company. The
loan proceeds are secured by customer contracts originated by Direct2Own through
the loan proceeds. The Agreement has a term until December 1, 2009.


PRIVATE SALE OF STOCK

During the quarter, no private sales of stock took place.

ONGOING REQUIREMENTS

We will have to secure additional capital to meet our ongoing requirements and
to meet our stated objectives throughout the 2006 fiscal year. We are
identifying potential investors in conjunction with our current finance
partners, and will seek to secure new investment banking partners


                                       4
<PAGE>

on an ongoing basis. Of course, sources of capital and the cost of capital are
subject to prevailing and general market conditions. Moreover, any terms and
conditions related to such investment or loan are contingent upon satisfactory
terms and conditions for the Company. Based on current market conditions and
given our success in raising private financing in the past, we expect that we
will be able to complete financings as required for growth and operations. We
are continuing to review all opportunities for both long-term equity programs as
well as debt financing. Any significant capital expenses or increases in
operating costs will be dependent upon our ability to raise additional capital,
debt financing or generate revenue from sales of our products or services.

ITEM 3. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, we conducted an evaluation,
under the supervision and with the participation of our chief executive officer
and chief financial officer of our disclosure controls and procedures (as
defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon
this evaluation, our chief executive officer and chief financial officer
concluded that our disclosure controls and procedures are effective to ensure
that information required to be disclosed by us in the reports that we file or
submit under the Exchange Act is recorded, processed, summarized and reported,
within the time periods specified in the Commission's rules and forms. There was
no change in our internal controls or in other factors that could affect these
controls during our last fiscal quarter that has materially affected, or is
reasonably likely to materially affect, our internal control over financial
reporting.


                                       5
<PAGE>

                                     PART II

                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On February 3, 2006, the Company was named as a defendant in a civil complaint
with the County of San Diego Superior Court Case No. GIC860806, San Diego,
California. The action is entitled, "La Jolla Cove Investors, Inc., a California
corporation vs. Direct Response Financial Services, Inc." The complaint is for
breach of contract based upon an allegation that the Company failed to repay
alleged monies due and payable under a pre-existing convertible debenture, as
amended, between the Company and La Jolla Cove Investors, Inc. made on or about
January 9, 2003. The Company denies any liability under the complaint. The
Company has also cross-complained against La Jolla Cove Investors and certain
individuals for damages caused to the Company by reason of their acts and
omissions.

The complaint seeks monetary damages of $242,882.62 plus interest of $19.94 per
day from and after January 31, 2006, plus reasonable attorneys' fees and court
costs. Contingencies exist with respect to this litigation matter, the ultimate
resolution of which cannot be presently determined. Accordingly, there can be no
assurance that the Company will prevail in this litigation.

Direct Response Financial Services, Inc. is not aware of any threatened legal
proceedings. The foregoing is also true, to the knowledge of the Company, with
respect to each officer, director and control shareholder as well as any entity
owned by any officer, director and control shareholder.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

ITEM 5. OTHER INFORMATION

CRITICAL ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS

On February 1, 2006, the Company adopted the provisions of Financial Accounting
Standards Board Statement No. 123R, "Share-Based Payment" (SFAS 123R). SFAS 123R
requires companies to measure and recognize compensation expense for all
employee stock-based payments at fair value over the service period underlying
the arrangement. Please refer to Note 5 of the Company's Financial Statements
for more information.

ITEM 6. EXHIBITS

31.1  Certification by Chief Executive Officer pursuant to Sarbanes-Oxley
      Section 302: Provided Herewith

31.2  Certification by Chief Financial Officer pursuant to Sarbanes-Oxley
      Section 302: Provided Herewith

32.1  Certification by Chief Executive Officer pursuant to 18 U.S. C. Section
      1350: Provided Herewith

32.2  Certification by Chief Financial Officer pursuant to 18 U.S. C. Section
      1350: Provided Herewith


                                       6
<PAGE>

                                   SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                               DIRECT RESPONSE FINANCIAL SERVICES, INC.


                               BY: /s/ T. Randolph Catanese
                                   ---------------------------------------------
                                   T. Randolph Catanese, Chief Executive Officer
                                   (Principal Executive Officer)

Dated: June 16, 2006


In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.



           NAME                  TITLE                    DATE
------------------------         ----------------     -------------
/s/ T. Randolph Catanese         CEO and Director     June 16, 2006
T. Randolph Catanese

/s/ Daniel Brandt                CFO                  June 16, 2006
Daniel Brandt

/s/ Douglas Hume                 Director             June 16, 2006
Douglas Hume


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