Originally Posted by DannoXYZ

OMG, I haven't seen DiaCompe 500 brakes in like 15-years!!! To find out if it's the pin or the brake-arm that's bent, just loosen that one and rotate 180-degrees. If the pad stays in the same orientation, then it's the arm that needs to be bent back.

This is the problem with bending the arms to get toe-in on the pads. You install new pads on new rims on new brakes and you end up with some squealing because the pad surface is parallel to the time. So you bend the arm slightly to toe-in the front of the pad and it works great. Until a couple months later with wear, the pads' surface are again parallel to the time, so you bend the arm again. Repeat again and again and you end up with a brake-arm bent so badly that it looks like the above with new pads.

Be careful, bending back aluminium that's been bent that severely can crack and break it. A better way to toe-in brake-pads is to just sand off the rear of the pads. Just 2-3 seconds on a rotary-sander is all you need to get a 1-2mm gap at the rear.