diff --git a/src/mrchat-private.h b/src/mrchat-private.h
index 032734ed..30eb90c1 100644
--- a/src/mrchat-private.h
+++ b/src/mrchat-private.h
@@ -62,6 +62,7 @@ int             mrchat_are_all_members_verified__ (mrchat_t*);
 
 #define         MR_CHAT_PREFIX              "Chat:"      /* you MUST NOT modify this or the following strings */
 #define         MR_CHATS_FOLDER             "Chats"      /* if we want to support Gma'l-labels - "Chats" is a reserved word for Gma'l */
+#define         MR_CHATS_FOLDER_FALLBACK    "INBOX.Chats"/* This is used if the toplevel folder can't be created (e.g DomainFactory) */
 
 
 #ifdef __cplusplus
diff --git a/src/mrimap.c b/src/mrimap.c
index ff090cc1..23bf4a0c 100644
--- a/src/mrimap.c
+++ b/src/mrimap.c
@@ -316,7 +316,7 @@ static int init_chat_folders__(mrimap_t* ths)
 	folder_list = list_folders__(ths);
 	for( iter1 = clist_begin(folder_list); iter1 != NULL ; iter1 = clist_next(iter1) ) {
 		mrimapfolder_t* folder = (struct mrimapfolder_t*)clist_content(iter1);
-		if( strcmp(folder->m_name_utf8, MR_CHATS_FOLDER)==0 ) {
+		if( strcmp(folder->m_name_utf8, MR_CHATS_FOLDER)==0 || strcmp(folder->m_name_utf8, MR_CHATS_FOLDER_FALLBACK)==0 ) {
 			chats_folder = safe_strdup(folder->m_name_to_select);
 			break;
 		}
@@ -332,8 +332,16 @@ static int init_chat_folders__(mrimap_t* ths)
 		mrmailbox_log_info(ths->m_mailbox, 0, "Creating IMAP-folder \"%s\"...", MR_CHATS_FOLDER);
 		int r = mailimap_create(ths->m_hEtpan, MR_CHATS_FOLDER);
 		if( is_error(ths, r) ) {
-			/* continue on errors, we'll just use a different folder then */
-			mrmailbox_log_warning(ths->m_mailbox, 0, "Cannot create IMAP-folder, using default.");
+			mrmailbox_log_warning(ths->m_mailbox, 0, "Cannot create IMAP-folder, using trying INBOX subfolder.");
+			r = mailimap_create(ths->m_hEtpan, MR_CHATS_FOLDER_FALLBACK);
+			if( is_error(ths, r) ) {
+				/* continue on errors, we'll just use a different folder then */
+				mrmailbox_log_warning(ths->m_mailbox, 0, "Cannot create IMAP-folder, using default.");
+			}
+			else {
+				chats_folder = safe_strdup(MR_CHATS_FOLDER_FALLBACK);
+				mrmailbox_log_info(ths->m_mailbox, 0, "IMAP-folder created (inbox subfolder).");
+			}
 		}
 		else {
 			chats_folder = safe_strdup(MR_CHATS_FOLDER);