The 27-year-old actress was reportedly shopping at Rag & Bone in Soho Sunday when two of her credits cards were declined for a $300 purchase.
"Lindsay was trying to buy something for around $300 but her credit cards were declined," a source told Page Six. "She looked really embarrassed and tried to negotiate before her friend finally stepped in and paid."
While Lohan told Oprah Winfrey during a post-rehab interview that at one point she was making $7 million per film, her financial situation has changed very much since then. As evidenced by her reality series, Lindsay, the Mean Girls star had to rely on an advance paycheck from Winfrey's OWN Network to cover rent and the security deposit of her new apartment in the Big Apple.
A rep for the recovering actress said the reports were "completely false."