Problem with rear caliper
 

Hey folks,
I am a bit of a noob when it comes to car parts, but I have a general knowledge, so please excuse me if i don't know the exact names for the parts :).

I drive a 2007 City Golf (exactly the same as a Golf 2005) I have been having a problem with my handbrake after replacing my pads. I would have to pull much harder for the brakes to lock the car in place. One day, the hand brake came completely lose and would pull back with no resistance and my car would roll freely. I opened the center console and noticed that one of the cables was off the EQ bracket (must have come off while I was changing the pads) and all this time i have only been using the passenger side brake.

I don't know what happened, because the cable has not snapped, but the lever where the cable hooks onto the rear passenger side caliper is stuck in the locked position, but the wheel turns freely.

Any ideas on what is wrong or how I can fix it would be much appreciated.
Thanks!