Toyota recall nightmare results in deal with 29 states

• Toyota settles recall case with 29 states%27 attorneys general
• Automaker agrees to be more forthcoming with vehicle data and pay %2429 million
• It will also keep rapid-response teams to tackle vehicle issues

LOS ANGELES -- Toyota will pay $29 million and is vowing to make vehicle information more accessible under an agreement it is announcing today with attorneys general in 29 states about the way it conducted its recalls.

The agreement is an outgrowth of separate actions brought by the states after the automaker's rash of recalls in 2010, especially those involving allegations of defects that could cause cars to become runaways, so-called "unintended acceleration."

It is only the latest resolution to legal headaches for Toyota. In December, Toyota announced a $1.1 billion settlement to resolve consumer lawsuits about unintended acceleration. It came a week after the National Highway Traffic Safety Administration paid a $17.3 million fine for waiting too long to report defects that led to recalls.

"This settlement ensures Toyota drivers can have confidence in the safety of the vehicles they drive," said Michigan Attorney General Bill Schuette in a statement. His state's share of the $29 million settlement is $1.6 million.

The agreement also calls for Toyota to set aside $5 million as restitution for customers who had to pay for rental cars, taxi rides or other replacement transportation as a result of recalls in 2009 and 2010, Texas Attorney General Greg Abbott says.

Toyota says that under the settlement, it will create a database that will allow owners to look up their Vehicles Identification Numbers, or VIN, to see if they're vehicle is subject to a recall.

The attorneys general, in separate statements, say the agreement requires other consumer-protection measures. It bars Toyota from reselling vehicles with alleged safety defects without informing prospective buyers of it and assuring them it has been fixed. They are also not allowed to misrepresent reasons why it's requesting owners to bring in their vehicles for repair. And they won't be able to resell vehicles acquired through states' "lemon laws" as "Toyota Certified Used Vehicles," which typically sell at a premium compared with other used cars.

Toyota said it was pleased with the agreement.

"Resolving this inquiry is another step we are taking to turn the page on legacy issues from Toyota‟s past recalls in a way that benefits our customers," says Toyota General Counsel Christopher Reynolds.

States participating in the settlement also included Alabama, Arizona, Arkansas, Colorado, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Maryland, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, Washington and Wisconsin. Also included was a territory, American Samoa.