The actress hit the headlines on Thursday (30Jul09) when a British tabloid alleged she had failed to pay up following a stay at the luxurious Chateau Marmont in April (09).
A source said, "It seems Lindsay has unpaid bills at Chateau Marmont mounting up to $37,500 (£25,000). She'll ask for a room even though she's told there's an outstanding balance at the desk.
The Mean Girls star is denying all knowledge of the outstanding debt and sources at the exclusive resort insist Lohan doesn't owe the hotel anything.
And a representative is holding one of Lohan's former pals responsible for selling nonsense to the newspapers.
The spokesperson tells GossipCop.com, "Some ex-friend is making up a lot of stories and giving them to the British tabloids.".