I have read the FAQs and checked for similar issues: YES
My site's URL (web address) is: http://speedreadingclasses.org
Description (including timeline of any changes made):

Hi,

Last week I recieved the following message from google in regards to my site

Dear site owner or webmaster of http://speedreadingclasses.org/
We've detected that some of your site's pages may be using techniques that are outside Google's Webmaster Guidelines.
Specifically, look for possibly artificial or unnatural links pointing to your site that could be intended to manipulate PageRank. Examples of unnatural linking could include buying links to pass PageRank or participating in link schemes.
We encourage you to make changes to your site so that it meets our quality guidelines. Once you've made these changes, please submit your site for reconsideration in Google's search results.
If you find unnatural links to your site that you are unable to control or remove, please provide the details in your reconsideration request.
If you have any questions about how to resolve this issue, please see our Webmaster Help Forum for support.
Sincerely,
Google Search Quality Team


So as I have not paid for any links I checked with the 2 people doing my SEO for the site and both claim to have not paid for any links. I beleive them as they dont have a budget for them. My feeling is a competitor has done this and reported to google. Not sure where to go from here. Google did let me know that I they have recieved my reconsideration request though and yesterday I recieved the following message in my webmaster account

We've processed your reconsideration request for http://www.speedreadingclasses.org

We received a request from a site owner to reconsider how we index the following site: http://www.speedreadingclasses.org
We've now reviewed your site. When we review a site, we check to see if it's in violation of our Webmaster Guidelines. If we don't find any problems, we'll reconsider our indexing of your site. If your site still doesn't appear in our search results, check our Help Center for steps you can take.

The message doesn't indicated if the site is better now or not. My feeling is that as it has dropped ranking and I havent found what the issue is that the site is not fixed.

As no one from my side is paying for links how do I find it and stop it? I dont do reciprocal links unless I have some hidden somwhere on the site I dont know about?