LA County records recently revealed that five construction companies had filed liens – the right to retain a property to secure payments - for unpaid bills for remodelling her luxury Malibu home.
One claimant alone is asking for $674,043 for "labour and materials…to remodel main house, construct swimming pool, and construct foundations for guest house."
But in a statement released this week, the mum-of-two discredited speculation she is broke.
"I am financially secure and I want to thank everyone who expressed concern for me based on these rumours. I am actually touched at how much concern has been expressed for me over this."
"It is true that I am in a dispute with some of the contractors working on my home," she explained. "This is because after paying millions of dollars to build the house I continue to get bills from the contractors."
She added her lawyers were reviewing the work to see if the bills are "fair".
And Pamela, 42, also responded to county records which show she owes $252,360.39 in back state taxes and penalties for 2007.
"On a separate issue, mistakes may have been made in calculating taxes owed and we are now in the process of ensuring that any taxes owed are paid."
But, as they say, every cloud has a silver lining.
It was because of the work on her California residence that Pamela moved into a trailer park where she met her current boyfriend, Jamie Padgett.
Their romance began earlier this summer after the 42-year-old electrician stopped to offer her a ride to the beach in his golf cart, and has been blossoming ever since.