Yes we had this. My DS learned to read at 3 with a whole word approach and didn't use phonetics at all. He could not decode new words but only needed to be told once what they were. He was reading harry potter by 5 but not able to spell anything, even the simplest word. He was also refusing to write. We had to take a step back and use a phonetic approach where possible for a while. The other thing that really helped was reading Linda Silverman's stuff about visual spatial learners, and getting him to look at a word and make a picture of it in his mind that he could "look" at. Now he's a good speller. He is brilliant at recognising an incorrectly spelt word and slightly less good at knowing what the correct version is.
With my second child I put more emphasis on phonics from the start and avoided the problem.
