diff --git a/services/users.js b/services/users.js
index dea208c8e..13dddaf04 100644
--- a/services/users.js
+++ b/services/users.js
@@ -874,11 +874,24 @@ module.exports = class UsersService {
    * @return {Promise}
    */
   static async editName(id, username) {
+
+    // TODO: Revisit this when we revamped User status workflows.
+    const queryUsernameRejected = {
+      id,
+      username: {$ne: username},
+      status: 'BANNED',
+      canEditName: true
+    };
+
+    const queryCreateUsername = {
+      id,
+      status: 'ACTIVE',
+      canEditName: true
+    };
+
     try {
       const result = await UserModel.findOneAndUpdate({
-        id,
-        username: {$ne: username},
-        canEditName: true
+        $or: [queryUsernameRejected, queryCreateUsername],
       }, {
         $set: {
           username: username,
diff --git a/test/server/routes/api/account/index.js b/test/server/routes/api/account/index.js
index 08b9c8b1d..8d4e0057a 100644
--- a/test/server/routes/api/account/index.js
+++ b/test/server/routes/api/account/index.js
@@ -54,23 +54,6 @@ describe('/api/v1/account/username', () => {
         });
     });
 
-    it('it should return an error when the user submits the same username', (done) => {
-      chai.request(app)
-        .post(`/api/v1/users/${mockUser.id}/username-enable`)
-        .set(passport.inject({id: '456', roles: ['ADMIN']}))
-        .then(() => chai.request(app)
-          .put('/api/v1/account/username')
-          .set(passport.inject({id: mockUser.id, roles: []}))
-          .send({username: 'Ana'}))
-        .then(() => {
-          done(new Error('Expected Error'));
-        })
-        .catch((err) => {
-          expect(err).to.be.ok;
-          done();
-        });
-    });
-
     it('it should return an error when the user tries to edit their username if canEditName is disabled', (done) => {
       chai.request(app)
         .put('/api/v1/account/username')
diff --git a/test/server/services/users.js b/test/server/services/users.js
index 027ac524c..53f4bc018 100644
--- a/test/server/services/users.js
+++ b/test/server/services/users.js
@@ -238,6 +238,32 @@ describe('services.UsersService', () => {
         });
     });
 
+    it('should let the user submit the same username if user is not banned (create username)', () => {
+      return UsersService
+        .toggleNameEdit(mockUsers[0].id, true)
+        .then(() => UsersService.editName(mockUsers[0].id, mockUsers[0].username))
+        .then(() => UsersService.findById(mockUsers[0].id))
+        .then((user) => {
+          expect(user).to.have.property('username', mockUsers[0].username);
+          expect(user).to.have.property('canEditName', false);
+        });
+    });
+
+    it('should return error when a banned user submits the same username (rejected username)', () => {
+      return UsersService
+        .toggleNameEdit(mockUsers[0].id, true)
+        .then(() => UsersService.setStatus(mockUsers[0].id, 'BANNED'))
+        .then(() => UsersService.editName(mockUsers[0].id, mockUsers[0].username))
+        .then(() => UsersService.findById(mockUsers[0].id))
+        .then(() => {
+          throw new Error('Error expected');
+        })
+        .catch((err) => {
+          expect(err.status).to.equal(400);
+          expect(err.translation_key).to.equal('SAME_USERNAME_PROVIDED');
+        });
+    });
+
     it('should return an error if canEditName is false', (done) => {
       UsersService
         .editName(mockUsers[0].id, 'Jojo')