Incorrect loot

I was fighting a level 18 skrag, I am currently level 16. I am in a group with one other person (level 17) It said my loot was lowered due to fighting lower level creatures. This does not seem right.
The exact monster is the demented skrags. I just picked up this protector quest to kill them, so I do believe this is an error. Thank you for your swift response.
Comments
Hello Clarineted,

Thank you for reporting this bug to us. Could please provide screenshot of stats screen saying the loot was lowered when fighting Demented Skrag? Thank you!
I am sorry I wish I had saved it last night, I will next time it happens but i left my group and it started working for me. Thank you for the response and the advice for next time :)
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