Or if its a common name, someone else might have created the char with his cdkey, but never used it or set a PW.
I accidentaly connected to the crpg servers with "Bandit" once, creating the char. Never set a PW there before, when I had to (as you could start delete passwords of other chars with him) someone else already did set a PW, and even distributed skill points of the level1 char.