diff --git a/app/models/mail_handler.rb b/app/models/mail_handler.rb
index febee3d1c..0e07f1069 100644
--- a/app/models/mail_handler.rb
+++ b/app/models/mail_handler.rb
@@ -429,10 +429,8 @@ class MailHandler < ActionMailer::Base
     assign_string_attribute_with_limit(user, 'firstname', names.shift, 30)
     assign_string_attribute_with_limit(user, 'lastname', names.join(' '), 30)
     user.lastname = '-' if user.lastname.blank?
-
-    password_length = [Setting.password_min_length.to_i, 10].max
-    user.password = Redmine::Utils.random_hex(password_length / 2 + 1)
     user.language = Setting.default_language
+    user.generate_password = true
 
     unless user.valid?
       user.login = "user#{Redmine::Utils.random_hex(6)}" unless user.errors[:login].blank?
diff --git a/test/unit/mail_handler_test.rb b/test/unit/mail_handler_test.rb
index 7b4ffde13..adb250e56 100644
--- a/test/unit/mail_handler_test.rb
+++ b/test/unit/mail_handler_test.rb
@@ -726,14 +726,6 @@ class MailHandlerTest < ActiveSupport::TestCase
     end
   end
 
-  def test_new_user_from_attributes_should_respect_minimum_password_length
-    with_settings :password_min_length => 15 do
-      user = MailHandler.new_user_from_attributes('jsmith@example.net')
-      assert user.valid?
-      assert user.password.length >= 15
-    end
-  end
-
   def test_new_user_from_attributes_should_use_default_login_if_invalid
     user = MailHandler.new_user_from_attributes('foo+bar@example.net')
     assert user.valid?
diff --git a/test/unit/user_test.rb b/test/unit/user_test.rb
index 9ea57c722..9105dfda0 100644
--- a/test/unit/user_test.rb
+++ b/test/unit/user_test.rb
@@ -70,6 +70,20 @@ class UserTest < ActiveSupport::TestCase
     assert user.save
   end
 
+  def test_generate_password_should_respect_minimum_password_length
+    with_settings :password_min_length => 15 do
+      user = User.generate!(:generate_password => true)
+      assert user.password.length >= 15
+    end
+  end
+
+  def test_generate_password_should_not_generate_password_with_less_than_10_characters
+    with_settings :password_min_length => 4 do
+      user = User.generate!(:generate_password => true)
+      assert user.password.length >= 10
+    end
+  end
+
   def test_generate_password_on_create_should_set_password
     user = User.new(:firstname => "new", :lastname => "user", :mail => "newuser@somenet.foo")
     user.login = "newuser"