as far as banning the child in neighbourhood is concerned..thats the correct thing to do and i think all of you should ban the parents too.. in fact ban the parents first.. its because of these parents that children gets spoiled.. as for your dd i dont see any option than to make her understand or probably give her a new dress so she forgets.. which again is not very easy but what to do...

Take the matter to your neighbourhood watch group.  Make sure the other neighbours go too.
Did you know that their lack of discipline is actually a form of abuse?  They are not preparing their child for the real world and can actually be doing more harm than good.  I'm sorry your little girl is so upset.  It must be so hard for you to see.  Give her a cuddle from me and one from you.  My girls send hugs too.

You do need to be careful, as you don't know how nasty this woman might get - common thievery could be the least offensive job description in her resume!

That being said, there is no way she should get away with it - get together with your neighbours and make a list of stolen items to present to the police.  If you are living somewhere with a neighbour like this woman, I am guessing that none of you can afford to continuously replace items that this woman allows (and probably encourages), her child to steal.  Start labelling everything as well - on the outside even - with just your surname.

Hi
I would call the police immediately and tell them what has been happening. The reason the child is doing it is that she is getting away with it because of her mothers lies.
The police will come out and talk to the mother and the child. 
They will also talk to your child and they will know who is telling the truth.
The mother needs to be taught a lesson as it looks like she is getting away with it from the whole neighbourhood.
Get a few of the neighbours together to let the police know what she  and her daughter are doing.
I know of a mother that always lied for her kids too and as teenagers they shoplift and get caught and the mother still tries to defend the kids saying the police are just picking on her child.
It has got to the stage where her kids and herself are nto welcome at a lot of peoples homes no more. 
Involve the police to help the child if nothing else
Also to save you money replacing more stuff for the child to steal
Good luck
Luv Deb

I would call the police, they cannot get away with it, see what they can do..Good luck, and let us know how you go

I will have to totally agree with deborah here and put her name on all clothing. It's the only way, and if this happens again, and it's got your daughters name on it, then it's classed as stealing, and with what DA has said, then it's time to involve the police. I was going to say these 2 things, but these great people said it before me.

from now on you will have to have her name in all her clothes ,, im feeling sorry for this child as shes been taught wrong and will have a hard life,, i agree steal them back when its hung out and run inside with it and write her name on it asap ,, in the mean time have a talk to your child about it all ,, and get her something else ,, you will be banging your head against a brick wall here trying to talk to her parents ,, they sound awuful .. its not great when you have to watch your washing dry ,, can you get a little portible air clothes dryer to put inside to hand all your good stuff on there ?? im wondering how did she get into your yard to steal them in the first place ,, ??

also sounds like this neibours child is also neglected , if shes having to steal other childrens clothes and toys all the time shes trying to get attention herself negative sadly

I'd be inclined to phone the local police station and tell them what is going on and see what they recommend. Doesn't matter what age someone is, theft is still a crime.They might be willing to go and have a word with your neighbours and set them straight about it, or suggest the best action you can take. Let them know that you aren't the only person in the neighbourhood that has had this problem with her. That way they know they can go and talk to other neighbours as well if they need to.

Cheers, DA

Rather unkind of the neighbor, stealing from a little girl....pretty much tells you where her head is at...just not being used.

Two choices really, when in Rome do as the Romans do:  steal it back when on cloths line after being washed....or

Ask where the outfit was purchased and get your daughter another one if she is that upset.  If this neighbor's child has been banned from neighborhood, explain to your daughter, so she understands what this child is doing is wrong, and that her parents are not doing anything so now she can't play with the other kids as she steals....I don't know she would get the concept of the parents being in the wrong here.

Next time you dry your cloths...do so in another area where this child can not get to...

:o( for your little one!

Take care, Simba1

This is terrible and not a lot you can do if the parents are not being honest. Unfortunately you are going to have to lock up and keep the line inside or out the back where they can't access it. Plus I wouldn't be letting that child into my house. If they still said they weren't yours after you have identified a stain then I think you must know that they are not going to back down. If you call the police in you could just make the issue bigger and you really don't want to make it worse. I would leave it and learn from that. Keep your distance and lock up. Sorry, I know what it is like to live in this type of area believe me. Hope that they move out soon! LOL

How rude! You must be getting so frustrated. I think I would have called the police again by now. This is stealing. Do you have any photos of your daughter in those clothes? Sorry can't be more help. Leisa

My question is, how do you teach your child honesty if they see that dishonesty means they get what they want and you miss out?  No, it's not the child's fault, but unfortunatly it's usually the child that cops it when the adult does the wrong thing.

Isn't it disgusting the way people are these days! Due to the fact that you have no proof they are your child's clothes, there's really nothing you can do. Buy your little one some nice new clothes to cheer her up. Definately don't let that child back into your house.

The only other thing you can do is wait til you see the clothes on the neighbours clothes line and, if they are not home, steal them back!