Often people have messed up faction with the HK banker. Since the end result is droppable I always use a class that is faction friendly or can charm for the hand-in. TBH, just being able to gate back to WC twice makes for a quicker process than hoofing a paladin.
To MQ you should have ally faction with Hayle as should the person receiving. You don’t need them to factioned with Knights of Truth and can skip that if MQ’ing.
Outside forgetting to open the note first or destroying my old SF the other 30+ times for me have been successful. I haven’t done it in like 6 months though so can’t confirm if it was changed/broken. Does Hayle chat with you? Often you can test a quest with the prerequisite dialogue before handing in the items…no chatty, no clicky.
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