Reference:
http://everquest.allakhazam.com/db/quest.html?quest=499
When you hail Chesgard Sydwen, he asks you if you are a [citizen of Qeynos] or a visitor. When you say you are a citizen of Qeynos, he asks you whether you are a [member of Thunder] or just [lost]. When you say you are a member of Thunder, he does nothing.
The turn-in for Bandit Sashes, however, appears to be working just fine in spite of this.