Granted if they have limits thats a really big red flag that they're storing your password in plain text, as a hash should always be the same length, so you probably shouldn't sign up there anyway. I remember a few years ago I was signing up for a TD account, and about 5 pages through the signup page it wouldn't allow me to continue because my password was /too secure/ (not their exact wording, but that was basically the problem). What makes it funnier is a lot of sites would reject the password I used at the time as not being secure enough.
I stopped signing up at that point, but I remember getting a phone call (!) from them a couple days later asking why I didn't finish the sign up, and my answer was: because I'm not giving my money to a company that doesn't know how to store passwords!
They also limit your password to 8 characters.
This is a huge government website that heaps of Australians have to access at least fortnightly.
What's so bad about it?