Sounds like you need to clean out the caliper. Remove the caliper bolts, hold the caliper with the piston facing down into a catch pan. Pump the brake until the piston pops out and all the brake fluid oozes out. If the piston doesn't pop all the way out (sometimes it just makes it to the edge), grab it with vice grips over a rag as to not damage the piston, and pull it the rest of the way. Now unscrew the brake line so you can work on the caliper on the bench.
Look inside, it's probably gunked up and scaly in places. Clen it out with brake cleaner, hit the outer ring with a wire brush and some sandpaper while being careful the whole time not to mess up the gasket that's inside the piston hole. Clean inside the piston whole with PB blaster, wire brush, whatever you can get in there. Now clean the piston itself, steel wool and PB blaster work well. Finally clean the Brake Pad paying special attention to the sides so it can move freely back and forth into its housing (little sandpaper should do it.
Clean everything with brake cleaner, reassemble, refill, re-bleed. Done.