Password fail delay is too long - Linux Mint 17

As per the title, the delay after a failed password is very long.

In /etc/pam.d/login, FAIL_DELAY is configured as auth optional pam_faildelay.so delay=3000000 however, actual delay is about 10s.

This affects all places where a password is required - terminal/mdm login, su/sudo in terminal, cinnamon-screensaver (lockscreen), pkexec - everywhere.

Even canceling a su/sudo password prompt in terminal with ^C or ^D takes a long time.

How can I reduce this failed-password delay time to the actual 3s configured in /etc/pam.d/login ?