Rigidbody Position Changes don't work when moving.

Ok, I am in the process of making a pickup/hold system for my game. To make the object behave realistically, I am trying to make it move backwards when it collides with an object.

This works fine, the Rigidbody moves backwards when I walk into an object. The problem comes when I call rigidbody.position OR rigidbody.MovePosition to move the object back to the desired hold position.

The line only seems to work when I stop moving my Character. I am calling the function within a Coroutine that fires at the end of every FixedUpdate, and am logging the line before the move to see if it gets called. It does. It just does nothing.

Am I derping out here and forgetting something important?

Here are the two lines that actually do anything:

             Debug.Log ("Moving...");
             m_CurrentlyHeldItem.GetComponent<Rigidbody>().MovePosition(m_HoldPoint.position);

The rigidbody is not kinematic, has rotation frozen, and no gravity. Player moves using a C# version of the character motor, with small modifications, none of which are being used at this point. As such player is a Character Controller, and collision with the player is disabled while the object is held by changing the layer. So it does not collide with the player.