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I would assume they have the whole password in plain text, then. Not much you can do about it, just make sure you're not re-using any part of that password for other services. And if you are, then you should start changing them all to something unique, ideally with a password manager like Keepass or BitWarden. This is a good habit anyway, because you can never really know how companies are handling their IT security.
Crazy that that hasn’t become an issue for them yet! Thanks for the tips! I used to be pretty bad with my passwords but I’m reformed and using KeePass for everything these days.
One of the greats back on r/TalesFromTechSupport had a story about how his company (a telco, iirc) did the following with passwords:
A user could have a password that they thought was "štr0ng&longsupermegapasswordofdoom" and be able to log in with it, but what was stored was "0tr0ng0l" and they would have been able to log in with something like "!tröng$lips" as well.ä
None of this was communicated to the customers.
Obviously, once in a while a customer would call support because they were sure they had made a mistake entering their password but were able to log in anyway. And tech support had strict instructions to gaslight those customers that they must have entered the password correctly and just thought they made a mistake.
Hot damn 🙈