How did your neighbor's dog attack your pup? Did the neighbor's dog even touch your pup? It sounds like all it did was approach.
I wouldn't call animal control. It sounds like the neighbor knew they made a mistake and intervened very quickly before there were any injuries. I would only call animal control if my dog was injured or if they were repeat offenders or if they somehow thought they had the god-given right to leave their dog off leash and refused to admit they were at fault.
Perhaps you should visit the neighbor and see if their dog is friendly. Maybe then your dogs could meet under controlled conditions and your dog could get over this frightening event.