The long arm of the law has caught up with a Washington State company that was pitching a rapid debt reduction scheme. Mutual Consolidated Savings claimed it could help you pay off your debts three to five years sooner.

CTV News first told you about Mutual Consolidated Savings more than 18 months ago.

Lalita Kishore was one of many British Columbians enticed by the Washington State company to sign up for its interest rate reduction program.

The cost was close to $900. And when it failed to get Kishore's credit card company to lower her interest rate, she called the company for a refund. She was told by the customer service agent that the "company does not carry a cancellation policy."

But it does guarantee you'll save $2,500 and Kishore wasn't saving.

After CTV News contacted the company, it did refund Kishore's money.

"I'm very happy that that happened. It was shocking. I thought I'd never see that money. So it was very good news," Kishore said.

Meanwhile, Mutual Consolidated Savings was under investigation by the U.S. Federal Trade Commission in a joint operation with Canada's Competition Bureau

"Consumers are vulnerable to the kind of pitches where companies are saying they can solve their problems and all you have to do is pay a small fee," the Competition Bureau's Victor Hammill said.

The FTC labelled the offering from Mutual Consolidated Savings a "phony rapid debt reduction program." The investigation found:

• Mutual Consolidated Savings failed to honour their money-back guarantee.

• Called consumers whose telephone numbers were on the do-not-call registry,

• Transmitted fake caller ID information,

• And made illegal robocalls.

Mutual Consolidated Savings has agreed to pay $1.5 million to former clients -- including Canadians.

"What we've proven is you can't use the border as a shield against being investigated and for justice to take place. It's just not true any more that it's a barrier," Hammill said." We can take action wherever they are."

If you want a reduction in the interest you are paying -- call your credit card company or go in to talk it over with your financial institution and ask them what they can do for you. In about half the cases they will lower your rate.

With a report from CTV British Columbia's Chris Olsen