diff --git a/rhodecode/lib/auth_ldap.py b/rhodecode/lib/auth_ldap.py
--- a/rhodecode/lib/auth_ldap.py
+++ b/rhodecode/lib/auth_ldap.py
@@ -116,10 +116,10 @@ class AuthLdap(object):
                     log.debug("LDAP rejected password for user '%s' (%s): %s",
                               uid, username, dn)
 
-                else:
-                    log.debug("No matching LDAP objects for authentication "
-                              "of '%s' (%s)", uid, username)
-                    raise LdapPasswordError()
+            else:
+                log.debug("No matching LDAP objects for authentication "
+                          "of '%s' (%s)", uid, username)
+                raise LdapPasswordError()
 
         except ldap.NO_SUCH_OBJECT, e:
             log.debug("LDAP says no such user '%s' (%s)", uid, username)