I was trying to do the challenge and stole some meat from a village, they asked me to pay a ridiculous amount so I said I could not afford it, take back your property. It did not seem to affect their reputation of me. I later found if I took some meat and ate it then they were happy to take back the eaten meat with no consequences. I visited them a dozen times for a quick meal over the next month. One time I did not realise that I still had a small uneaten portion of the meat with me when I left and nobody asked me to pay, then 2 Km away I got three arrows in my leg, hip and arm which left me with a 6Km crawl home with no food. I never got to find out about my reputation as I died (again) soon after.