if it is loose when it is not engaged i dont think there is an adjustment for this the lever itself rotates on a round shaft on the trans. best i remenber. it should feel tight when it has pressure on it from being engaged. mabey you could drill out the hole in the lever and install a bushing t o make it tighter- a lot of trouble unless it is real loose. you may have to clean the area off good to see it well. one of the bolts thet tighten mine was missing so after i replaced it and adjusted it according to the manual it works great. you might be able to look at the band and see the layer of friction material mabey you could take the tran pan off the floor i had mine off and i think it made it easier. you might try to engage it and then rotate driveshaft to see why it is not holding.