The whole scene with the oathbreaker is bizarre. According to Larian, every time a paladin falls, this guy shows up to give them the choice or becoming an 'oathbreaker' or paying a set sum of gold to restore their powers is.....a huge retcon, and just....very weird.
Like this guy should be a huge deal in the lore if the situation he presents is even remotely representative of how this sort of thing works, but he literally didn't exist in the setting before Larian introduced him in the Paladin patch.
