She made up the conversation, but told me about it like it was real

Debated about whether or not to post about this, but it was so confusing to me, I thought I'd post here to ask about it in hopes of getting an explanation. Here's what happened......I sent my daughter to the bus stop with a bag full of Halloween treats to give to her buddies at the bus stop. Nancy, who lives next to me and seems to have a weird competition thing going on with me saw my daughter give the treats to the others and called me one morning and told me about a conversation that she had with my daughter about the Halloween treats. The convo went like this according to Nancy....Nancy: Sorry I don't have any Halloween treats to give you and the other girls Ann (Ann is my daughter). Ann: That's ok Nancy. Nancy: But Anne, I will go to the store today and get some candy to give you all. Ann: You don't have to do that Nancy. Nancy: Well, Ann I don't want all you girls to think I don't love you. Then sure enough, Nancy was waiting at the bus stop in her car when the bus came to drop the girls off after school. She called them over to her car and proceeded to give them all Halloween treats as well. I asked my daughter, Ann, about this conversation with Nancy and she said "Mom, I never said any of that stuff and she never said any of that stuff to me. What are you talking about? That never happened." I was shocked. Why would this woman call me special to tell me about a convo with my daughter that never took place? And my daughter is very truthful so I trust her that this convo did not happen. Furthermore......how creepy is it that this woman took time out of her day to go to the store and purchase candy to give to the girls when they got off the bus after my daughter did it?? And no, this wasn't just a kind gesture on her part. As I said, this woman has some sort of competition thing going on with me and she is known for being a mean person. Any insight into her made up story and behavior?? I don't get it.

Sounds to me like that woman is looking for trouble, parking near a school bus stop and offering candy to girls.

She sounds insecure and jealous

Isn't that gaslighting? Acting as if something was a certain way in order to manipulate another person?

What could she be doing? I wonder if this is grooming?

Sounds weird. I'd keep an eye on her.

You live in a rough neighborhood or something? One girl is harassing your daughter by ringing the bell then kids harass her on the bus then this dude lurking around looking at women then some neighbor isn't waving and now this woman. Lots going on in your area. I lived in a bad neighborhood once and sounds like it to me. Any chance you can get out of there?

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I spend every day wishing I could move. We do have many weird characters that live on or near our street. Plus several houses that have foreclosed and are now vacant. Problem is my husband doesn't have the interaction with the people in the neighborhood like I have to and doesn't see all this stuff. So he thinks there's no reason to move and refuses to. Plus he has this idea in his head that you stay in the same house till you become emptynesters and then you move. He's a fool. And he won't listen to me. I know you can't pick your neighbors, but what are the chances we'd get stuck next to this many weirdos if we did move. I'm willing to roll the dice. I'm sick of my neighborhood!!

Tell your husband it is time to move because the neighborhood is affecting you and your daughter, and that should be good enough reason for him to agree. Stay away from the strange woman who made up the story. And tell your daughter to stay away from her, too.

You live in an unsafe situation.

If you are unable to move I would form a community group to supervise children before and after school.