diff --git a/CRM/Core/BAO/CustomField.php b/CRM/Core/BAO/CustomField.php
index 7622d63c325d..ce816c53d1e4 100644
--- a/CRM/Core/BAO/CustomField.php
+++ b/CRM/Core/BAO/CustomField.php
@@ -193,21 +193,14 @@ public static function create(&$params) {
     }
 
     $transaction = new CRM_Core_Transaction();
-    // create any option group & values if required
-    if ($params['html_type'] != 'Text' &&
-      in_array($params['data_type'], array(
-        'String',
-        'Int',
-        'Float',
-        'Money',
-      ))
-    ) {
 
-      $tableName = CRM_Core_DAO::getFieldValue('CRM_Core_DAO_CustomGroup',
-        $params['custom_group_id'],
-        'table_name'
-      );
+    $htmlType = CRM_Utils_Array::value('html_type', $params);
+    $dataType = CRM_Utils_Array::value('data_type', $params);
+    $allowedOptionTypes = array('String', 'Int', 'Float', 'Money');
 
+    // create any option group & values if required
+    if ($htmlType != 'Text' && in_array($dataType, $allowedOptionTypes)
+    ) {
       //CRM-16659: if option_value then create an option group for this custom field.
       if ($params['option_type'] == 1 && (empty($params['option_group_id']) || !empty($params['option_value']))) {
         // first create an option group for this custom group
@@ -215,7 +208,7 @@ public static function create(&$params) {
         $optionGroup->name = "{$columnName}_" . date('YmdHis');
         $optionGroup->title = $params['label'];
         $optionGroup->is_active = 1;
-        $optionGroup->data_type = $params['data_type'];
+        $optionGroup->data_type = $dataType;
         $optionGroup->save();
         $params['option_group_id'] = $optionGroup->id;
         if (!empty($params['option_value']) && is_array($params['option_value'])) {
@@ -225,7 +218,7 @@ public static function create(&$params) {
               $optionValue->option_group_id = $optionGroup->id;
               $optionValue->label = $params['option_label'][$k];
               $optionValue->name = CRM_Utils_String::titleToVar($params['option_label'][$k]);
-              switch ($params['data_type']) {
+              switch ($dataType) {
                 case 'Money':
                   $optionValue->value = CRM_Utils_Rule::cleanMoney($v);
                   break;
@@ -262,7 +255,7 @@ public static function create(&$params) {
       if (empty($params['default_value'])) {
         //don't insert only value separator as default value, CRM-4579
         $defaultValue = self::getOptionGroupDefault($params['option_group_id'],
-          $params['html_type']
+          $htmlType
         );
 
         if (!CRM_Utils_System::isNull(explode(CRM_Core_DAO::VALUE_SEPARATOR,
@@ -275,7 +268,7 @@ public static function create(&$params) {
     }
 
     // since we need to save option group id :)
-    if (!isset($params['attributes']) && strtolower($params['html_type']) == 'textarea') {
+    if (!isset($params['attributes']) && strtolower($htmlType) == 'textarea') {
       $params['attributes'] = 'rows=4, cols=60';
     }
 
diff --git a/tests/phpunit/api/v3/CustomFieldTest.php b/tests/phpunit/api/v3/CustomFieldTest.php
index 6afbd5c97dde..76a14abcb3aa 100644
--- a/tests/phpunit/api/v3/CustomFieldTest.php
+++ b/tests/phpunit/api/v3/CustomFieldTest.php
@@ -544,6 +544,17 @@ public function testCustomFileField() {
     $this->assertEquals($attachment['id'], $result[$cfId]);
   }
 
+  public function testUpdateCustomField() {
+    $customGroup = $this->customGroupCreate(array('extends' => 'Individual'));
+    $params = array('id' => $customGroup['id'], 'is_active' => 0);
+    $result = $this->callAPISuccess('CustomGroup', 'create', $params);
+    $result = array_shift($result['values']);
+
+    $this->assertEquals(0, $result['is_active']);
+
+    $this->customGroupDelete($customGroup['id']);
+  }
+
   /**
    * @param $getFieldsResult
    *