Payment allocation on credit card

[majomom1]

What is the name of your state (only U.S. law)? MO

I have a credit card with a $1200 limit. $300 is available in cash.

I recently made a payment on the account of $500 and want them to apply $300 to the "Cash" transactions... and the balance to "Purchases". The credit card company refuses to apply it according to my instructions.

Since I am making more than the minimum payment - am I not allowed to request how my payment is applied?

[FarmerJ]

Unfortunately card companys get pretty evil about structuring the debt of the card holder to tweak the maximum amount of fees and interest they can get. Ill bet if you re read your agreement with them you will learn they likely have a policy where they direct the payments to cover purchases first. No matter what if you can make the whole balance go away soon do it and use the card only for true emergency use saving your self alot in interest charges.

[majomom1]

Their response to me was:

Your payments will be allocated in a manner we determine with applicable law, and may change from time to time. As a general rule, payments are applied from the lowest rate to the highest rate in the following order: Interest, Service fees, Late fees, NSF fees, Overlimit fees, Insurance, Annual fees, Principal, then current transactions.

I was wondering when the underlined would apply and under what circumstances it could "change from time to time". What is applicable law? And is it Federal, or State?

I also found that for determining "outstanding" balances for court... they have to apply payments in transaction order. Under that scenerio... the cash transactions should be paid in full with the payments on my account.

I'm just looking for the argument that would get them to change the application of this last payment. As I stated before, I know that only making the minimum payment I would be out of luck, but since I usually pay the balance in full or large payments as quickly as possible that I should be able to request this and would think there would be some "fair credit law" that would obligate them to honor my request.