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Awhile back my car was hit and I had it towed. Long story short, the genius that towed my car put the e-brake on while he towed it and since then the handle won't stay up if I pull it...like all the teeth that would normally click in place until you press the release button are broken off or something. The brakes do work when I pull it (tested that out while rolling slow in a parking lot) it just won't lock in place. Of course the tow company is saying its not their problem so I need to fix it on my own. Anyone have ideas of where I should start? Not sure where to start to figure out what I need to get to fix it.
This may help. It's funny, it's been so long since I did this, I don't remember if the symptoms were exactly like yours or not!
Check to see if the emergency brake button is sticking out further than usual from the handle (I mean a very small difference, maybe a 1/4 of an inch.) That's what I noticed, and here is the fix.