Thomas ap Seyton  

So...I was running around Barfog at level 30 & had enough loot on me so I ventured over to the merchant area to sell it off. But the merchants were aggressive to me. I wandered around looking for mobs that weren't grey, and found Sir Dillus at the guard tower who was still green to me at level 30. Upon slaying him, I got the following faction messages:

Your standing with Barfog Renegade has decreased.
Your standing with Pobl y Treath has increased.

Immediately after this, I went back to the merchant area. This means that the merchants must be part of the Pobl y Treath faction!

I'd imagine Sir Dillus, Rhyfelwr, and the renegade guards at the tower are part of the Barfog Renegade faction, though the latter were grey to me and I didn't get any messages to that effect.

Shallot