President Michael D Higgins has signed the Fianna Fáil Private Members' Bill to regulate so-called vulture funds.
The President signed the bill into law on Christmas Eve.
Fianna Fáil's spokesperson on finance said that after consultation between the Central Bank and the Department of Finance, he understands the provisions of the new law will become operational on January 21.
Michael McGrath said the coming into effect of this legislation is a good day for mortgage holders, business owners and farmers whose loans have been sold on to vulture funds or who fear their loan will be sold by their bank in the future.
"Under this legislation, vulture funds can be directly inspected and investigated by the Central Bank. The regulator will also, if necessary, be able to take enforcement action against these funds," Mr McGrath said.
He said that until now, these vulture funds have been "untouchable".
"The Central Bank will now for the first time be able to have direct contact with these funds and apply strict regulation directly to them. The law ensures that whoever is ultimately calling the shots on the management of a loan portfolio will be regulated," Deputy McGrath added.
Meanwhile, Brendan McGrath said that comments in the media today from Taoiseach Leo Varadkar about how vulture funds are better than banks at dealing with debt problems are really "quite bizarre".
Deputy McGrath said the comments underline "how out of touch he is with the reality facing tens of thousands of families across the country".
"It is the objective of most people struggling with debt to hold on to their home or their business and they are prepared to make great sacrifice to do so," he said.
"Entering into long-term restructure arrangements with their bank give them a chance to get back on their feet over time while staying in their home.
"The Central Bank's own research confirms that a borrower is less likely to get a long-term restructure on their loan from a vulture fund than from a bank," he added.
