Saddles?!? Glitch? I'm confused.

99.9% of us have all started fresh, such as me and my gf. We started a new custom game last night, and to my surprise all the pal gear is unlocked in our key items. All saddles, all pal equip, everything. Has anyone else come across this, or did I get one Hella glitch?

Mind you I only noticed this when I reached about lvl 10