diff --git a/pkg/cmd/ban_test.go b/pkg/cmd/ban_test.go
index 78ba65f..766ba89 100644
--- a/pkg/cmd/ban_test.go
+++ b/pkg/cmd/ban_test.go
@@ -227,23 +227,7 @@ func TestCreateBannedUser(t *testing.T) {
 		// then
 		require.Error(t, err, "something went wrong listing the banned users")
 	})
-	t.Run("NewBannedUser call fails", func(t *testing.T) {
-		//given
-		userSignup := NewUserSignup()
-		userSignup.Labels = nil
-		newClient, fakeClient := NewFakeClients(t, userSignup)
-		term := NewFakeTerminal()
-		ctx := clicontext.NewCommandContext(term, newClient)
 
-		// when
-		err := cmd.CreateBannedUser(ctx, userSignup.Name, func(signup *toolchainv1alpha1.UserSignup, bannedUser *toolchainv1alpha1.BannedUser) (bool, error) {
-			return true, nil
-		})
-
-		// then
-		require.Error(t, err, "userSignup doesn't have UserSignupUserEmailHashLabelKey set")
-		AssertNoBannedUser(t, fakeClient, userSignup)
-	})
 }
 
 func TestCreateBannedUserLacksPermissions(t *testing.T) {