I just finished this quest with my 21 infiltrator. I received 23 silver and more than 600,000 experience points when I turned in the cloak. If you are hunting in that area anyway, this is a nice quest to do.
For anybody who may be having difficulty finding them, the excaped bandits are just south of the first druid ring you run into if you head due east from the tower where Guard Dafydd stands. Look around at loc 26000, 57000 and you should see them walking up and down the hillside south of that druid ring.
Guard Dafydd is the "merchant guard" that many of us sell our loot to when hunting in the southern portions of the plains.
By the way, these bandits drop a lot of loot -- gems, some armor, and other things of decent value as well. They respawn very quickly, and a small group or skillful soloer could do fairly well hunting them.