Direct Deposit Question

I was curious if anyone was using either EQT's or Antero's direct deposit service. EQT allows them to not only make a deposit of your royalties, but to withdraw money from your account in the event of overpayment, etc. Without notice as far as I can tell. On this forum I have notice several people talking about overpayment issues. One day your mortgage payment is there and the next day it is gone and not to the mortgage company. I was thinking about doing the DD with Antero since they don't state the debit clause in their agreement, but was wondering if anyone knew any different.

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Permalink Reply by TH on June 22, 2015 at 12:24pm

That is true for ALL Direct Deposit Accounts that I know of. If you give them the "right" to deposit money into your account, you also give them the "right" to withdraw any and all cash in that account and without any notice to you.  

Permalink Reply by bo boboski on June 22, 2015 at 2:39pm

REALLY?   now that is scary!

Permalink Reply by TH on June 23, 2015 at 8:47am

Two other things to know about Direct Deposit Accounts. I wanted to make sure I was correct on how this could worked, so I contacted my bank today.

First, If your Direct Deposit Account is linked to another account (like Over Draft Protection), then both accounts can be drained by the payer.

Second, if you set up a Direct Deposit Account and later you contact the payer and get a paper check and deposit it in the same account or a different account, they still have your account code and permission to withdraw from your Direct Deposit Account ( your different account would be safe, as long as it was not linked). Per my bank, the only way to insure the safety of your account is to kill off the Direct Deposit Account and start an entirely new account.  

Permalink Reply by Bob Shaw on June 22, 2015 at 10:32pm

You can control this by transferring funds to another account at another bank.

Permalink Reply by Frank Walker on June 23, 2015 at 6:17am

Spot on, Bob:

When my royalty money hits the designated destination account it is withdrawn within an hour to a different account.  That same day it is ordered moved, via ACH, to an entirely different financial institution.  So if they want to withdraw any money, they have to move really, really fast!!  :-)

Permalink Reply by rmc on June 23, 2015 at 8:36am
I am not drawing any royalties yet but am expecting to this fall.
I have already formed a FLP with an account in a bank where the royalties will be paid into once the deposit has cleared it will be automatically divided between the partners and deposited into different accounts.
Same banking instutation though.

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