The number of times people are told they can borrow a phone from a friend is growing as the number of people looking to borrow a device from a family member increases.
It is now a crime to not repay a loan within 14 days after making a phone call.
The maximum penalty is €1,000 per person.
This is in contrast to the EU law, which states a maximum penalty of €10,000 is possible for a default on a loan.
The EU also has rules on the use of mobile phone bills, which stipulate that a person may not use their mobile phone bill to make a purchase.
The latest law will make this a criminal offence.
The government said it would amend the law so that it could be used to suspend the repayment of a phone or mobile phone payment.
It said this would be a means of protecting taxpayers from being ripped-off by unscrupulous people who are using fraudulent mobile phone numbers to borrow money.
In a separate measure, the new law will require a new phone for every family member that has a phone.
The number has grown since the government’s first draft of the law was published in February and is now set to rise to 200,000 by 2022.