Cityscape Financial Corp. may need to take an additional reserve, which would impair its fourth-quarter earnings, according to a filing with the Securities and Exchange Commission.

The company said $15 million of increased reserves it set aside in the second quarter may be insufficient to offset the impact of a ruling by the United Kingdom's Office of Fair Trade that some high-fee loans it made there may be rescinded by borrowers.

About half of Cityscape's earnings were generated by its U.K. operations, and the company was booking hefty gain on sale assumptions from its loans there, analysts said.

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