Dappy’s management were allegedly forced to pay bailiffs £6,000 after the debt collectors threatened to raid the Celebrity Big Brother house to extract the money they claimed to be owed.
According to reports, the former N-Dubz star is currently in debt, but bailiffs had been unable to locate him until they saw him on the show.
"His management got an irate call from bailiffs who said they were fed up hunting for him," a source alleged to The Sun.
"His appearance on CBB had basically been winding up the creditors - so they were planning to go to the house to serve him with court papers.
"His people were worried it would have made him look ridiculous - so paid the bill."
A spokesperson for Dappy declined to comment on whether management had forked out to prevent the action.
However, a representative for Celebrity Big Brother denied that bailiffs had threatened to raid the house directly, commenting when asked for clarification: "This is not true."
Dappy apparently signed a £100,000 deal for the latest series of the Channel 5 show.
If reports of his financial woes are true, he would be the second member of the former hip-hop group to struggle with debts.
Fazer, 26 applied for bankruptcy on 4 December 2013 under his real name, Richard Rawson.
Tulisa, too, who is currently facing a criminal trial for the alleged supply of Class A drugs to an undercover journalist, sparked reports of financial difficulties after she put her £4.6million Hertfordshire mansion up for sale.
This is also the second scandal to plague Dappy during his time in the CBB house.
During a conversation with US model and actress Jasmine Waltz, she asked him whether he had ever performed an oral sex act on himself. Dappy looked surprised and replied, “Do I look bent?”
The 26-year old was called to the Diary Room where he was warned about his behaviour.
Producers were concerned that the anti-gay slur could be deemed derogatory by viewers of the reality TV show.
N-Dubz parted ways in 2011 after releasing a greatest hits album, and have not worked together since.
Celebrity Big Brother 5: Meet the 2014 housemates
Celebrity Big Brother 5: Meet the 2014 housemates
He got kicked in the face by a horse only recently, but the N-Dubz rapper has seemingly recovered in time for some Celebrity Big Brother drama. Tulisa Contostavlos’ cousin, the controversial singer is known for his catchphrase ‘Na Na Niii’ and wearing woollen hats coined ‘Dappy hats’. Dappy has collaborated with Tinchy Stryder on the chart-topping single ’Number 1’ since leaving the band.
2/12 Sam Faiers
Star of augmented reality TV, Towie's Sam Friers is best remembered as getting a ‘vajazzle’ done – the ‘prettification’ of one’s lady area with gemstones. The ex-fiancée of Joey Essex and former gymnast almost became a Page 3 girl for The Sun and says she would still love to model for Ann Summers. Joey recently appeared on I’m A Celebrity Get Me Out Of Here, so was Faiers jealous of his limelight perhaps?
3/12 Jasmine Waltz
She might or might not have punched Lindsay Lohan in the face in a 2010 catfight over rugby player Danny Cipriani. Aside from that, Waltz is known for her involvement in the celebrity dating scene. She has been romantically involved with Jesse McCartney, David Arquette (who admitted sleeping with her while married to actress Courtney Cox), Chris Pine and Ryan Seacrest among others.
4/12 Evander Holyfield
Mike Tyson bit off this guy’s ear in 1997 during the famous ‘Bite Fight’ in Las Vegas. Evander ‘The Real Deal’ Holyfield is a four-time world heavyweight boxing champion, so the other celebrities had best not start a squabble with him. He made over $230 million while competing in the ring but has donated a large proportion of his earnings to the Church. This should be interesting…
5/12 Casey Batchelor
She’s a British Glamour Model best known for…her 34GG breasts. Things could get competitive with a certain other lady with *ahem* ‘assets’ entering the house this year. ‘I think they’re amazingly feminine and make every outfit sexy, which can be a problem sometimes,’ Casey said. ‘By the time I was 15 they were an E, then by 18 they’d hit FF!’
6/12 Liz Jones
The one-time editor of Marie Claire, Jones is renowned as a Daily Mail columnist. The British journalist claims to have been anorexic aged 11 and was sacked from Marie Claire for refusing to use bulimic models in the magazine. She sparked controversy in 2012 when she criticised presenter Holly Willoughby for posting a photo of herself sans make-up on Twitter, calling the act ‘a betrayal to women’.
7/12 Jim Davidson
Arguably the biggest hitter in the line-up, the cockney comedian experienced a 20 year battle with alcohol and was declared bankrupt in 2006. Davidson has had four failed marriages and been in rehab twice. He was awarded an OBE for his charity services and is known for his controversial views. ‘Women are meant to be slim and attractive,’ he once wrote on his blog.
8/12 Lee Ryan
The English pop star was a member of the boy band Blue. They sold over 14 million records worldwide including classics such as ‘All Rise’ and ‘One Love’. In 2003, he got engaged to Atomic Kitten’s Liz McClarnon but they split due to the pressures of being a celebrity couple.
9/12 Luisa Zissman
She was the runner-up on Alan Sugar’s The Apprentice, but that’s boring compared to how she describes herself – with the energy of a Duracell bunny, sex appeal of Jessica Rabbit and a brain like Einstein, apparently. She speaks openly about regularly attending sex parties (yes…) and owns a cake shop chain.
10/12 Ollie Locke
'Bicurious' Made in Chelsea star Locke is known as an entertaining character. He was attacked outside a nightclub at his friend Cheska’s birthday party by a hater of the show. Locke quit the reality TV show in August 2013, claiming that ‘the party’s over for me’. A big partier, he claims to always carry eyelash curlers and admits to being vain, ‘but not arrogant’.
11/12 Lionel Blair
British TV personality Blair started acting in London Underground stations and air raid shelters during WWII. He was the star of popular TV game shows Name That Tune and Give Us A Clue and like Nolan, enjoyed a West End career too.
12/12 Linda Nolan
Nicknamed ‘Naughty Nolan’ after her raunchy photo shoots, Linda first hit stardom in family act The Nolans. The group released disco hit ‘I’m in the Mood for Dancing’ before Nolan went on to enjoy an acting career with a West End appearance in Blood Brothers as Mrs Johnstone. She survived breast cancer in 2006 after undergoing a mastectomy.