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Higardi faction wont affect the game at all. Unless you want to do all your shopping and selling and stuff in Arnika. Then you will have to fight higardi all the time but thats no big deal. I'm pretty sure that you cannot fix a faction with any monster group once you are neutral to them. You can only do that with single NPCs like merchants. At least I've never found a way to do it but I have been known to be wrong.
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