diff --git a/electrum/daemon.py b/electrum/daemon.py
index 96ac2cf7d..f6efa490e 100644
--- a/electrum/daemon.py
+++ b/electrum/daemon.py
@@ -623,13 +623,18 @@ class Daemon(Logger):
             if not wallet.storage.is_encrypted():
                 is_unified = False
             try:
-                wallet.check_password(old_password)
+                try:
+                    wallet.check_password(old_password)
+                    old_password_real = old_password
+                except util.InvalidPassword:
+                    wallet.check_password(None)
+                    old_password_real = None
             except Exception:
                 failed.append(path)
                 continue
             if new_password:
                 self.logger.info(f'updating password for wallet: {path!r}')
-                wallet.update_password(old_password, new_password, encrypt_storage=True)
+                wallet.update_password(old_password_real, new_password, encrypt_storage=True)
         can_be_unified = failed == []
         is_unified = can_be_unified and is_unified
         return can_be_unified, is_unified
diff --git a/electrum/storage.py b/electrum/storage.py
index fbf7cbe70..2eecc7eb0 100644
--- a/electrum/storage.py
+++ b/electrum/storage.py
@@ -29,6 +29,7 @@ import hashlib
 import base64
 import zlib
 from enum import IntEnum
+from typing import Optional
 
 from . import ecc
 from .util import (profiler, InvalidPassword, WalletFileException, bfh, standardize_path,
@@ -186,9 +187,11 @@ class WalletStorage(Logger):
             s = s.decode('utf8')
         return s
 
-    def check_password(self, password) -> None:
+    def check_password(self, password: Optional[str]) -> None:
         """Raises an InvalidPassword exception on invalid password"""
         if not self.is_encrypted():
+            if password is not None:
+                raise InvalidPassword("password given but wallet has no password")
             return
         if not self.is_past_initial_decryption():
             self.decrypt(password)  # this sets self.pubkey
diff --git a/electrum/wallet.py b/electrum/wallet.py
index b0c9f6813..9d7d68925 100644
--- a/electrum/wallet.py
+++ b/electrum/wallet.py
@@ -2682,7 +2682,12 @@ class Abstract_Wallet(ABC, Logger, EventListener):
     def may_have_password(cls):
         return True
 
-    def check_password(self, password):
+    def check_password(self, password: Optional[str]) -> None:
+        """Raises an InvalidPassword exception on invalid password"""
+        if not self.has_password():
+            if password is not None:
+                raise InvalidPassword("password given but wallet has no password")
+            return
         if self.has_keystore_encryption():
             self.keystore.check_password(password)
         if self.has_storage_encryption():