# Does direct deposit preclude right to dispute or contest?
**URL:** https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180
**Category:** Howard County, TX
**Created:** [January 15, 2021, 4:59pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180 "2021-01-15T16:59:39Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@InquiringNewbie](https://www.mineralrightsforum.com/u/InquiringNewbie)
#### Post date: [January 15, 2021, 4:59pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/1 "2021-01-15T16:59:39Z")
We are advised to not sign up for direct deposit of our royalties and receive checks instead because direct deposit could preclude our ability to later dispute or contest an underpayment. Whereas by holding an uncashed check we preserve rights to dispute or contest.
Is that right? Thank you.
P.S. Is there a Texas statute or regulation that addresses this?
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### Author:  [@Lee\_Ann](https://www.mineralrightsforum.com/u/Lee_Ann)
#### Post date: [January 15, 2021, 5:06pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/2 "2021-01-15T17:06:05Z")
@InquiringNewbie regardless you should still get record of your check stubs.
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### Author:  [@InquiringNewbie](https://www.mineralrightsforum.com/u/InquiringNewbie)
#### Post date: [January 15, 2021, 6:37pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/3 "2021-01-15T18:37:13Z")
Thanks for your reply. Yes, we’ll still get the record of our check stubs. What we’re hearing is that direct deposit of a royalty check is the equivalent of depositing a check that has written on it words to the effect that depositing or cashing the check is satisfaction and release of any future claim that the check was an underpayment.
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### Author:  [@Lee\_Ann](https://www.mineralrightsforum.com/u/Lee_Ann)
#### Post date: [January 15, 2021, 7:54pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/4 "2021-01-15T19:54:36Z")
@InquiringNewbie I understand now. That is a good question & unfortunately I do not know the answer to that!
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### Author:  [@TODD\_M\_Baker](https://www.mineralrightsforum.com/u/TODD_M_Baker)
#### Post date: [January 15, 2021, 11:06pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/5 "2021-01-15T23:06:56Z")
In short, no that is not correct.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [January 16, 2021, 5:47pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/6 "2021-01-16T17:47:33Z")
NARO TX is hosting a webinar on that very topic on February 21. The NARO website has links to sign up. [www.naro-us.org](http://www.naro-us.org).
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### Author:  [@TennisDaze](https://www.mineralrightsforum.com/u/TennisDaze)
#### Post date: [January 17, 2021, 4:35am UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/7 "2021-01-17T04:35:19Z")
Many direct deposit agreements provide that the oil company is not responsible if the bank delays the deposit or puts it in wrong account. That is not the same as being able to review and question the volumes, sales, tax and other charges, and decimal. You are limited to four years to audit underpayment of royalty under Texas statute of limitations.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [April 15, 2021, 4:59pm UTC](https://www.mineralrightsforum.com/t/does-direct-deposit-preclude-right-to-dispute-or-contest/60180/8 "2021-04-15T16:59:50Z")
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