Hull and Celtic had agreed a season-long loan deal for the midfielder with only personal terms standing in the way for the move to go through.
Bullard travelled to Scotland for talks last week and he held discussions with Tigers owner Russell Bartlett on Sunday to discuss his future options
However, it is believed Bullard's personal demands have seen the deal collapse and it has infuriated Pearson.
"The deal is off as far as we are concerned - because of absolutely ridiculous financial demands being made by the player," Pearson told the Daily Mail.
"We have bent over backwards to try to make this happen and four weeks ago there was an agreement with Celtic in place over a one-year loan.
"But now it seems Jimmy wants extra cash on top as well and he has jeopardised the chance to play for a great club. Who would not want to play at Celtic, with a chance of European football and silverware?
"Hull City were prepared to subsidise a year in Glasgow for Bullard. Let's just say we would have made a significant contribution to the overall wage package.
"But unless he has a dramatic change of heart overnight, we expect him back here rather than being in the United States with Celtic. He has had four weeks to make up his mind and has strung people along, frankly."
The news is a blow to Hull who were keen to offload Bullard to ease their financial problems, while Celtic boss Neil Lennon will have to look elsewhere as he aims to strengthen his squad.