diff --git a/services/identity/src/grpc_services/authenticated.rs b/services/identity/src/grpc_services/authenticated.rs
--- a/services/identity/src/grpc_services/authenticated.rs
+++ b/services/identity/src/grpc_services/authenticated.rs
@@ -325,16 +325,6 @@
 
     debug!("Attempting to delete wallet user: {}", user_id);
 
-    let maybe_username_and_password_file = self
-      .db_client
-      .get_username_and_password_file(&user_id)
-      .await
-      .map_err(handle_db_error)?;
-
-    if maybe_username_and_password_file.is_some() {
-      return Err(tonic::Status::permission_denied("password user"));
-    }
-
     self
       .db_client
       .delete_user(user_id)