Am having a similar issue, our client has additional groups created for their Board Members to allow them to edit and update their own page on the site. Groups are assigned manually to an active account, however, should the membership lapse they are unable to renew their account until the extra (board member) group assignment is removed. Instead of being allowed to reactivate their account they are presented with the message "Your login is blocked."
I've tried creating a stand-alone plan similar to the instructions above, however it doesn't resolve the conflict. Any recommendations/suggestions would be welcome.
Thanks.