If a note disclosure state 5% of payment amount with a minimum of $10.00. If loan is past due for February 10 and late charge is assessed and now customer is past due for March 10 payment and another late charge assessed. Is this considered pyramiding?

The pyramiding of late charges prohibits the practice of assessing a delinquency charge on a full payment that is made in a timely manner if the only delinquency is attributable to a late fee or delinquency charge assessed on an earlier installment.

So, did the customer make a full payment for the February payment, did they make any payment on the payment due in March? Do you post payments to late charges first? You would need to provide more detail as to what you concern might be.

If loan is past due for February 10 and late charge is assessed and now customer is past due for March 10 payment and another late charge assessed. Is this considered pyramiding?

The way this is worded I am going to assume the borrower made no payments. If that assumptions is correct then IMO you would be able to assess the late fee for each past due payment....HOWEVER....review your state law for any restrictions.

Payment due on the 10th with a 10 day grace period

Payment due 2/10 no payment received late fee assessed on 2/20

Payment due 3/10 - full payment for 3/10 made on 3/15 - 2/10 payment still past due.

IN statues considers the 3/10 payment paid on time and since a late fee was already assessed on the 2/10 past due payment you cannot assessed another late fee even though your system may have applied the payment for 2/10 and is showing the loan past due for 3/10.