Threat of legal action

I've recently installed a Ring 3 video doorbell but one of my neighbours has taken offence to this. They are seeking compensation from me for distress, claiming that I am breaching data protection laws and threatening court action. I have blacked out all other properties around me, have turned off motion detection, have put visible signs up outside my property and don't even subscribe to Ring Protect! So the only time the camera activates is if someone presses the button on the doorbell. Just wondering if anyone else has had these sort of issues with a neighbour and how it ended up being resolved?