Woman thought I was going to report her for recycling bottles and cans?

You can a rebate that way can't you?
We don't do that over here unfortunately
but if it were me i would just let her

I guess she was going through you're recyclable stuff out in front of your house? I see that from time to time. They get nervous about doing it, and probably because it shows they are poor, and that is embarrassing.
I feel sorry for people that have to resort to this, but it is better than doing nothing. We all have to eat.

Why would any report someone for doing something good?