I'm running latest version of ownCloud 8.2.2 - community version.
I've tested your app and it's not working.
For start, I've installed the app and in the admin part I've configured the settings.
Next, what I did is to try to add new user (though admin) and it doesn't work, I can simply add user with password "test".
Next, I login with normal user and when I try to change password under personal, it says what is the password policy, but whatever I type it says "Wrong password" - I had password like Paa@ssw0rd$1one, which have upper/lower chars, number, special character and it still fails.
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