To adjust the position of the brake levers, you have to loosen the bolt which is located in the brake lever itself - dumb, I know.

What to do: pull the brake like you normally do. When the cable extends, you can see into the brake hood and should see a 4mm(?) hex head. Stick an allen key up there, and turn left to loosen. Rotate your brake levers, and then tighten. Your cable will be pulled all the while you are doing this. If there is a better way of adjusting the levers, I haven't found one.