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Brake Lever Not Fully Retracting

I'm going to remove the brake lever again and clean up all around and inside the brake lever housing. I will remove all lubricants (oil, etc.) around the pivot bolt, etc. and not lub anything. I will try using it dry and see if it retracts. Just maybe there is too much light oil causing the lever a bit of resistance. I should find some kind of "dry" lubricant. Anyone have any good suggestions for a dry lubricant?
 
I'm going to remove the brake lever again and clean up all around and inside the brake lever housing. I will remove all lubricants (oil, etc.) around the pivot bolt, etc. and not lub anything. I will try using it dry and see if it retracts. Just maybe there is too much light oil causing the lever a bit of resistance. I should find some kind of "dry" lubricant. Anyone have any good suggestions for a dry lubricant?

There's several out there, but I haven't tried any for that application myself. AutoZone has this one I have seen locally...

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UPDATE:

I took the brake lever assembly apart, removed as much oil as possible by wiping everything down with a clean terrycloth.

I checked the brake switch and it appeared to be OK and the rubber boot was fully intact with no visible damage. The brake switch was dry with no oil residue that could affect its' operation.

I loosened the right side hand grip and reinstalled everything while the grip was slightly loose. I believe the problem with the brake switch was with the alignment of the brake assembly to the hand grip assembly. I adjusted and tweaked the reinstallation. After several attempts, I got it all together and the brake lever now retracts smoothly and the brake light goes off as expected. What I discovered was the two parts were not adjusted or aligned properly causing excess resistance for lever movement.

I lightly relubed the pivot pin and all friction areas. Everything appears to be working properly.

To confirm, I will have to take the bike out for a test ride. This is a great excuse to ride.

I thank everyone for their assistance.
 
.... Why isn't the lever retracting back with enough force to contact the switch to turn off the brake light?
..........

.. . . . .the spring that pushes the brake leaver back is in the master cylinder and pushes the master cylinder piston back which in turn pushes the brake leaver back.
.... . . . .. . .Brian

UPDATE:

I took the brake lever assembly apart.. . .. .. I loosened the right side hand grip and reinstalled everything while the grip was slightly loose. . . . . . ..
I got it all together and the brake lever now retracts smoothly and the brake light goes off as expected. .. .. . .
I thank everyone for their assistance.

Glad you got it working, I just now saw this thread. I knew it had to be either your master cylinder was bad, or you had the brake housing and switch/grip housings in a bind. As Brian said there is no other item that is involved in the brake lever returning. The brake light button switch might cause the brake lite to malfunction but it does not have anything to do with returning the lever. Nor is the lever tightened down with a bolt, it is inserted into the housing and secured with a circlip.

I'm surprised you got it together the first time without having the brake housing still loose. I've never been able to get mine back on with it being loose. It won't let you rotate the switch housing in otherwise.
 
I had this same issue in my FLH... I did new pads and fluid this year and the lever was not retracting enough to let the brake lights turn off.
I opened my fluid reservoir today and cleaned out a bunch of junk (sludge on bottom) and used an air hose to blow out the 2 holes in the bottom of the reservoir.
Refilled with fluid and all is fine.
 
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