UPDATE: Thursday, Jan. 21 (2:05 p.m. ET) – Heather McDonald is firing back at Chelsea Handler after her former boss accused her of selling stories about Handler to tabloids, a charge that McDonald refuted this morning on her podcast, Juicy Scoop with Heather McDonald.

“I have never betrayed Chelsea Handler,”; says McDonald in the podcast. “I never sold stories to tabloids or traded them to benefit myself or get myself in them.  his is completely untrue and has never happened. I am an honest person.” Listen:

Chelsea Handler taking no prisoners after hearing what Heather McDonald had to say about her experiences working on her former show Chelsea Lately.

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“I lived in fear, 100 per cent lived in fear,”; McDonald, 45, told the Allegedly podcast.

McDonald, who was a writer and on-air personality on the E! show, continued: “I enjoyed my time there, I was happy, but I mean, something would happen and my heart would be beating and I would be like, “Is this it?’ – you know? And then somehow I just managed to keep surviving.”;

Paying a visit Jenny McCarthy’s Sirius XM talk show, Handler, 40, counters McDonald’s comments, saying she could have fired her after she found out McDonald was selling stories to gossip magazines, but didn’t.

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“I never hung out with her personally again. So I hope she was living in fear,”; Handler adds. “It’s not an internment camp. If you’re living in that much fear, go get another job.”;

Listen to both McDonald and Handler’s interviews below.